U.S. stock index futures dropped on Monday after Wall Street's surge in the prior session as major lenders came under pressure on concerns over possible spillover effects of a hedge fund's default on margin calls.
Nomura and Credit Suisse warned of significant 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.The news has sparked fears that other lenders could be in the process of exiting these positions too. Shares in Discovery Inc rose about 5per cent after tumbling 27per cent on Friday, while U.S.-listed shares of Tencent Music rose 4per cent after nearly halving in value last week. ViacomCBS, Baidu and VIPShop fell between 0.2per cent and 1.5per cent.