US stock futures fall to start short holiday week

By DAVID K. RANDALL | September 6, 2011 | 7:55 AM EDT

In this Aug. 29, 2011 photo, trader John Yaccarine, center, works on the floor of the New York Stock Exchange. The Swiss franc dropped sharply Tuesday, Sept. 6, 2011, after the country's central bank pegged it against the euro, while European stocks recovered their poise following a drubbing the previous session, when investors fretted over the exposure of banks to the debt of countries like Greece and Italy.(AP Photo/Richard Drew)

NEW YORK (AP) — U.S. stock futures are sharply lower ahead of the first day of trading in a holiday-shortened week.

The losses come in the wake of steep declines in European indexes on Monday. The Stoxx 600 Europe index fell 4.1 percent because of concerns that Europe's debt problems could slow growth around the world.

The Institute of Supply Management will release its report on the U.S. service sector Tuesday morning. Economists expect it to show the fourth straight month of declining growth.

The U.S. markets were closed Monday for the Labor Day holiday.

About two hours before the opening bell, Dow Jones industrial average futures are down 204 points, or 1.8 percent, to 11,004. S&P 500 futures are down 24, or 2.1 percent, to 1,144. Nasdaq 100 futures are down 35, or 1.6 percent, to 2,129.