U.S. stock-index futures slide with volatility set to continue

The turmoil seen in August is set to continue on the final day of the month.

E-mini futures on the Standard & Poor’s 500 Index expiring in September lost 0.8 percent to 1,974.5 as of 7:47 a.m. in New York. Contracts on the Dow Jones Industrial Average dropped 130 points, or 0.8 percent, and those on the Nasdaq 100 Index slid 0.6 percent.

“Financial markets are vulnerable,” said Stewart Richardson, chief investment officer at RMG Wealth Management in London. “With economic conditions not improving, and in our view probably deteriorating next year, the volatility and stress seen in the last two weeks will happen again, and likely even be worse.”

The S&P 500 has lost 5.5 percent this month, the most since May 2012, as China’s currency devaluation spurred concern over global growth, erasing more than $5.3 trillion in equity market values worldwide. The uncertainty sent the Chicago Board Options Exchange Volatility Index up a record 115 percent in August.

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More than $2 trillion of share value was erased from U.S. markets between the end of July and the lowest levels of last week, a sum equal to roughly two years of S&P 500 earnings, data compiled by Bloomberg show.

Rate increase

Despite the rout, remarks by Federal Reserve Vice Chairman Stanley Fischer suggested the central bank hasn’t ruled out lifting interest rates when the Federal Open Market Committee gathers Sept. 16-17. Bets on a September Federal Reserve liftoff climbed after he said there is “good reason” to believe inflation will accelerate.

Netflix Inc. dropped 1.9 percent in early New York trading after saying it won’t renew its contract with cable network Epix. Phillips 66 rose 2.1 percent after Warren Buffett’s Berkshire Hathaway Inc. disclosed a $4.5 billion stake in the Houston-based oil refiner.

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