US STOCKS-Futures tumble as Japan crisis worsens

                                

                                
 * Japan's nuclear crisis hits financial markets
                                
 * General Electric, AIG slump in premarket
                                
 * Futures down: S&P 32.2 pts, Dow 255 pts, Nasdaq 63.75
                                
 * For up-to-the-minute market news see [STXNEWS/US]
                                
 By Edward Krudy
                                
 NEW YORK, March 15 (Reuters) - U.S. stock index futures
tumbled about 2 percent on Tuesday as Japan faced a looming
nuclear crisis, sending global equities sharply lower in what
could be a prolonged bout of turmoil for financial markets.
                                
 Japanese stocks <.N225> slid 10.6 percent, posting the
worst two-day losing streak since 1987. European stocks dropped
3.1 percent Tuesday morning, led by shares of nuclear-related
utilities, luxury groups and assurance companies.
                                
 S&P 500 futures <SPc2> lost 32.2 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc2> plummeted
255 points, and Nasdaq 100 futures <NDc2> dropped 63.75
points.
                                
 U.S. shares seen as exposed to the disaster as well as
economically sensitive stocks plunged. Insurer American
International Group Inc <AIG.N> fell 8 percent, General
Electric Co <GE.N> dropped 6 percent, and aluminum producer
Alcoa Inc <AA.N> lost 4 percent.
                                
 In order to avoid unsettling markets even further, the U.S.
Federal Reserve was now more likely to leave its monetary
policy statement unchanged later Tuesday, said Peter Cardillo,
chief market economist at Avalon Partners.
                                
 "Before this tragedy there was an outside chance that the
Fed was going to be a bit more hawkish due to increasing oil
prices and due to the growing inflationary concerns," he said.
                                
 A Japanese nuclear power plant sent low levels of radiation
floating toward Tokyo, prompting people to flee the capital and
others to stock up on essential supplies. [ID:nLDE72D2FT]
                                
 Investors scrambled to assess the fallout from the crisis.
Texas Instruments Inc <TXN.N> warned on Monday of lost revenue
from two semiconductor plants in Japan following the country's
biggest-ever earthquake. [ID:nN14286200]
                                
 In light of what could be the worst nuclear crisis since
the Chernobyl disaster in 1986, investors were questioning the
nuclear industry's growth prospects. The Global X Uranium
exchange traded fund <URA.N> fell 7.4 percent.
                                
 Japanese shares traded in New York also slumped. Canon Inc
<CAJ.N> fell 7.2 percent, while Sony Corp <SNE.N> dropped 11
percent. The ISHR MSCI Japan exchange traded fund <EWJ.P> lost
7.5 percent.
                                
 Exchanges enforced short-sale restrictions against many
Japan and nuclear industry related exchange traded funds, such
as the Market Vectors uranium and nuclear energy fund <NLR.P>
and the ProShares Ultra MSCI Japan fund <EZJ.P>.
                                
 Oil and other commodity prices fell as investors feared
Japan's crisis would hit global growth. Brent crude dropped 4.6
percent to near $108 per barrel, while U.S. crude slid 4
percent to near $97. London copper fell more than 1 percent.
                                
 Adding to market jitters, on Monday Saudi Arabia sent
troops into Bahrain, home to the U.S. Navy's Fifth Fleet, to
protect government facilities after weeks of protests by the
Shi'ite Muslim majority. [ID:nLDE72D0KH]
  (Editing by Jeffrey Benkoe)