NEW YORK ( TheStreet) -- Stock futures were signaling a down day for major U.S. markets Monday as a shocking bailout plan for Cyprus reignited eurozone financial contagion fears and spurred selling around the globe.
Futures for the Dow Jones Industrial Average were slumping 77 points, or 84.11 points below fair value, to 14,356.
Futures for the S&P 500 were slipping 13.5 points, or 14.2 points below fair value, to 1,540. The index failed to reach a record closing high on Friday as investors retreated from equities on a plunge in consumer confidence.
Futures for the Nasdaq were lower by 21 points, or 22.91 points below fair value, at 2,769.5.Eurozone finance ministers agreed Saturday on a bailout plan for Cyprus that requires a levy of a 9.9% tax on bank accounts with balances above €100,000 and those with less that amount to be taxed at a 6.75% to raise €5.8 billion for the near-bankrupt nation. Speculation that Spain and Italy could be next in this unprecedented move to force depositors to contribute to a bailout and take losses was sparking fears of a run on banks across the eurozone. "Every euro area finance minister should be reminded, daily, that history tells us that monetary unions die as a result of bank runs," Paul Donovan, managing director of global economics at UBS in London, said in a note Monday. UBS doesn't think that the eurozone will break up. However "the bail out of Cyprus over this weekend has not helped that conviction ... and contagion risks are higher as a result of the terms of the bailout," said Donovan. Investors piled into gold, Treasuries and the U.S. dollar as eurozone contagion fears spurred safe-haven buying. The euro was plunging 1.02% against the greenback. The benchmark 10-year Treasury yield skidded to 2.023% as prices surged by 14/32 and the dollar was rising 0.51%, according to the
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV