CORRECTED-US STOCKS-Wall Street set to slip as bank stocks fall on hedge fund default concerns

(Corrects paragraph 13 to say Boeing received an order for 100
aircraft, not 100 orders)
* Boeing rises on Southwest's orders for 737 MAX jets
* Archegos-linked stocks extend losses from last week
* Futures down: Dow 0.57%, S&P 0.55%, Nasdaq 0.31%

By Devik Jain and Medha Singh
March 29 (Reuters) - U.S. stock index futures pointed to a
lower open for Wall Street on Monday after a surge in the
previous session, as global banks said they faced potential
losses from a hedge fund's default on margin calls.
Nomura 8604.T and Credit Suisse CSGN.S warned of losses
after the U.S. hedge fund, named by sources as Archegos Capital,
defaulted, hitting shares in some big U.S. media and Chinese
tech companies. Shares in Morgan Stanley MS.N tumbled about 5% after the
Financial Times reported it had also sold billions of shares,
while Bank of America Corp BAC.N , Citigroup Inc C.N ,
JPMorgan Chase & Co JPM.N , Goldman Sachs GS.N and Wells
Fargo & Co WFC.N dropped between 1.6% and 2.5%.
The news has raised concerns about whether the full extent
of Archegos' apparent wipeout has been realized or whether there
was more selling to come from other lenders.
Nomura still has positions to unwind, Bloomberg reported,
citing a Japan government official. Shares in Discovery Inc DISCA.O , U.S.-listed shares of
Tencent (HK:0700) Music TME.N , ViacomCBS VIAC.O , Baidu BIDU.O and
VIPShop VIPS.N , all linked to Archegos Capital, gave up early
gains to shed 0.6% and 5.8%. Theses stocks lost between 30% and
50% of their values last week.
"It's a black eye for the financial industry because it
suggests that there still may not be a full handle on risk
control when it comes to leveraged trading," said Rick Meckler,
partner at Cherry Lane Investments, a family investment office
in New Vernon, New Jersey.
"This seems like a pretty specific case. It could lead to
increased regulation ... but the impact on broader markets is
going to be small."
Wall Street's main indexes surged over 1% in a late-session
rally on Friday as investors looking to rebalance their
portfolios at the end of the quarter, piled into economy-linked
banks, energy, materials as well as technology names.
The Dow and the S&P 500 are less than 1% from their record
highs, while the tech-heavy Nasdaq is still about 7.1% from its
February all-time high.
"We've come far really fast and I wouldn't be surprised to
see a pause ... especially after the rally that we've had and
because we don't have earnings season yet right," said
Stephanie Link, chief investment strategist at Hightower
Advisors.
At 08:40 a.m. ET, Dow E-minis 1YMcv1 were down 188 points,
or 0.57%, S&P 500 E-minis EScv1 were down 21.75 points, or
0.55% and Nasdaq 100 E-minis NQcv1 were down 40.75 points, or
0.31%.
Planemaker Boeing Co BA.N rose 2.6% after reaching a deal
with U.S. budget carrier Southwest Airlines Co LUV.N for an
order for 100 of the 737 MAX aircraft variant. Southwest's
shares gained about 0.5%. Bitcoin prices BTS=BTSP gained about 4% after Visa Inc
V.N said it would allow the use of the cryptocurrency USD Coin
to settle transactions on its payment network, the latest sign
of growing acceptance of digital currencies by the mainstream
financial industry.