US STOCKS-Wall Street set to drop at open after spike in new virus cases

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* Cyclical banks, energy stocks slide
* Moderna up on report Israel in talks to buy its vaccine
* Futures down: Dow 2.24%, S&P 1.97%, Nasdaq 1.32%

(Adds quote, details; updates prices)
By Devik Jain and Medha Singh
June 15 (Reuters) - Wall Street was set to drop sharply at
the open on Monday as a recent jump in coronavirus cases in
China and parts of the United States dashed investor hopes of a
quick economic rebound that had powered the Nasdaq to record
levels last week.
Battered shares of U.S. airlines, resorts and cruise
operators slumped again after attempting a rebound over the past
month.
United Airlines Holdings Inc UAL.O , Norwegian Cruise Line
Holdings Ltd NCLH.N and Wynn Resorts WYNN.O fell between
5.1% and 10.1% in premarket trading.
Beijing re-imposed measures to curb the spread of the virus
after a wholesale food market saw an unexpected spike of cases.
A record number of new infections and hospitalizations were
reported in more U.S. states, including Florida and Texas, over
the weekend. The CBOE volatility index .VIX , a gauge of investor
anxiety, jumped to its highest level since April 22 to 44.44
points.
"People are fearful about new cases rising, but at some
point when you move 45% off the lows in such a short period of
time, any excuse will do to have a nice consolidation of the
gains," said Thomas Hayes, managing member at Great Hill Capital
Llc in New York.
Trillions of dollars in fiscal and monetary stimulus along
with easing of restrictions had lifted the S&P 500 earlier last
week as much as 47.5% from the pandemic low in March and helped
the tech-heavy Nasdaq confirm a bull market.
But, a dismal economic outlook from the U.S. Federal Reserve
and jitters over a resurgence in coronavirus cases sent the Wall
Street's main indexes for their worst week since March.
Beginning Tuesday, investors will focus on Fed Chair Jerome
Powell's two-day testimony before the Congress on the monetary
policy report.
At 8:07 a.m. ET, Dow e-minis 1YMcv1 were down 573 points,
or 2.24%. S&P 500 e-minis EScv1 were down 59.75 points, or
1.97% and Nasdaq 100 e-minis NQcv1 were down 127.25 points, or
1.32%.
The benchmark S&P 500 index .SPX was set to open below its
200-day moving average, a closely watched technical indicator.
Stocks from economically-sensitive sectors, including
financials and energy, also fell. U.S. lenders Bank of America
Corp BAC.N , Citigroup Inc C.N and Morgan Stanley MS.N
dropped 3.5% to 4%.
Oil majors Exxon Mobil Corp XOM.N and Chevron Corp CVX.N
shed about 3% each.
Moderna Inc MRNA.O rose 5.1% after a report said Israel is
in advanced talks with the drug developer to buy its coronavirus
vaccine.