US STOCKS-Futures tank as virus fears spur flight to safety

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* Futures down: Dow 2.06%, S&P 2.24%, Nasdaq 2.57%

By Medha Singh
March 6 (Reuters) - U.S. stock index futures dropped sharply
on Friday as compounding fears about the economic damage from
the coronavirus epidemic drove investors to perceived safe
havens such as bonds and gold.
The outbreak, which has infected nearly 100,000 globally,
has crippled supply chains and prompted a sharp cut to global
economic growth forecasts for 2020.
Starbucks Corp SBUX.O became the latest company to signal
a business hit due to fewer customers at its Chinese stores,
while Costco Wholesale Corp COST.O said it was struggling to
keep up with demand for essentials, including disinfectants.

The prospect of cheaper money had briefly lifted sentiment
after the Federal Reserve slashed interest rates in a surprise
move on Tuesday, but it later led to panic about the extent of
the economic impact of the coronavirus.
Following wild swings since Monday, the benchmark S&P 500
.SPX looked set to close out the week more than 10% below its
record close on Feb. 19. The CBOE Volatility index .VIX , Wall
Street's fear gauge, has marked its sharpest ever increase this
quarter.
Growth worries are also expected to overshadow a closely
watched monthly employment report due to at 8:30 a.m. ET. It is
likely to show U.S. jobs growth slowed in February. At 7:18 a.m. ET, Dow e-minis 1YMcv1 were down 537 points,
or 2.06%. S&P 500 e-minis EScv1 were down 67.5 points, or
2.24% and Nasdaq 100 e-minis NQcv1 were down 222.5 points, or
2.57%.
The benchmark U.S. 10-year Treasury yield US10YT=RR hit an
all-time low on Friday, pressuring rate-sensitive bank stocks.
US/
Bank of America Corp BAC.N , Citigroup Inc C.N , JPMorgan
Chase & Co JPM.N , Goldman Sachs GS.N , Wells Fargo & Co
WFC.N and Morgan Stanley MS.N dropped between 2.7% and 3.9%
in premarket trading.
American Airlines AAL.O and United Airlines UAL.O , which
have been battered on depressed travel demand, slid more than 3%
each.
Energy companies Schlumberger SLB.N , Marathon Petroleum
Corp MPC.N and EOG Resources Inc EOG.N fell more than 3%,
tracking a 4% slump in oil prices. O/R