U.S. Stock Futures Decline as Investors Await Whether Greece Will Default

U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will drop after posting the third-biggest weekly gain since 2009, as investors await a decision on whether Greece will receive a payment that would help prevent a default.

S&P 500 futures expiring in December lost 1.5 percent to 1,193.4 at 11:58 p.m. Hong Kong time. The index surged 5.4 percent last week, the most since the period ended July 1.

Greece’s ability to avoid default hangs in the balance this week as international monitors get set to assess whether Prime Minister George Papandreou can meet the conditions of rescue loans. The Greek leader canceled a U.S. visit that was to begin yesterday, saying he needed to remain in the country for a “critical” seven days.

“The Greek situation could be coming to a head,” said Khiem Do, the Hong Kong-based head of multi-asset strategy at Baring Asset Management, which oversees about $10 billion. “Some hair cut might be needed for Greece if they don’t receive additional funding. That could create a domino effect in countries like Spain, Italy and Portugal. That’s what the market is fearing.”

European Union and International Monetary Fund inspectors hold a teleconference call today with Finance Minister Evangelos Venizelos, to judge whether the government is eligible for its next aid payment due next month.

U.S. stocks advanced between Sept. 9 and Sept. 16 as government officials and central bankers took steps to ease the European debt crisis.

Decisive Action

The S&P 500 climbed to the highest level since Aug. 31 at the end of the week after European Central Bank President Jean- Claude Trichet pressed euro-area governments to take decisive action to halt the debt crisis. The ECB extended an emergency lifeline to lenders, after central bankers said they would provide dollar loans, and French President Nicolas Sarkozy and German Chancellor Angela Merkel said they are convinced Greece will remain in the euro zone.

Dell Inc. climbed 8.8 percent last week after boosting its share buyback program, helping send technology companies in the S&P 500 to a 7.1 percent increase, the most since July 2009. Hartford Financial Services Group Inc. rallied 14 percent after Credit Suisse Group AG boosted its rating, and Aetna Inc. advanced 9.3 percent after saying profit will probably beat its forecast. Goodrich Corp. surged 10 percent amid speculation United Technologies Corp. may buy the company.

To contact the reporter on this story: Nick Baker in New York at nbaker7@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net