US STOCKS-Equity futures drop after weekend of little progress on U.S. finances


By David Gaffen

Oct 7 (Reuters) - US S&P 500 E-mini futures fell 1percent early Monday morning, suggesting a weak open for U.S.stocks later in the day after a weekend where little progresswas made on resolving the budget standoff or raising the debtceiling.

S&P E-mini futures dropped 18 points, or 1.07 percent, to1666.75 in electronic trading early on Monday, suggesting a dropat the open on Monday morning, falling further after an initialdecline when trading opened at 6 p.m. (2200 GMT).

Republican House Speaker John Boehner told ABC's "This Week"on Sunday that he would not raise the debt ceiling without a"serious conversation" about what is driving the debt, a stanceDemocrats called reckless. Treasury Secretary Jack Lew said itwas irresponsible to raise the possibility of a U.S. default.

U.S. equity markets have been under pressure of late, andvolatility has risen, as the Oct. 17 deadline to raise thefederal borrowing limit gets closer. The S&P 500 is down 2.2percent from an all-time high reached in mid-September.

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