Stock futures fall as government shutdown seems likely

Reuters
Traders work on the floor of the New York Stock Exchange
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Traders work on the floor of the New York Stock Exchange, May 1, 2012. REUTERS/Brendan McDermid

NEW YORK (Reuters) - U.S. stock index futures fell on Sunday as a last-minute deal to resolve the budget battle in Washington appeared less likely, making a government shutdown more likely.

Such a shutdown is expected to impact markets by injecting massive amounts of uncertainty into all asset classes. If a deal is reached quickly, that might allow markets to recover, but a prolonged shutdown could have significant implications for economic growth and consumer confidence.

S&P 500 futures fell 12.8 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 73 points and Nasdaq 100 futures sank 16 points.

(Reporting by Ryan Vlastelica; Editing by Leslie Gevirtz)

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