US pre-open: Futures pointing lower ahead of options' expiry

Wall Street futures are pointing to a lower start on the back of concerns around the impact of the Delta variant on the economy and the ongoing crackdown on technology firms by Beijing and head of options' expiry.

Nevertheless, some economists, while anticipating slower US economic growth in the third quarter, were also expecting a faster pace of expansion in the last three months of the year - in the US and China.

Among them were Ethan S.Harris and Aditya Bhave at Bank of America.

In a research report sent to clients, the two said the US slowdown was the result of higher Covid cases and "severe" supply-side constraints, while in China it was mainly because of policy tightening and a slow response to weakening growth.

As at 1231 BST, futures tracking the Dow Jones Industrials were retreating by 167.0 points, alongside a 21.75 point drop for those on the S&P 500 and a 48.0 point slide in those for the Nasdaq-100.

Overnight, the Hang Seng entered so-called 'bear market' territory, while crude futures and 10-year US Treasury note yields were down but the US dollar and gold were higher.

On the corporate side of things, stock in Moderna was down 2.5% ahead of the opening bell after the Washington Post said US health officials were looking into reports of a higher than previously estimated risk of a heart condition linked to its Covid-19 vaccine.

Ross Stores' shares were lower alongside, retreating 4.05% after the retailer's guidance fell short of the Street consensus.

Worth noting, there was some market chatter to be heard that options' expiry on Friday could contribute to volatility in financial markets.