LONDON (MarketWatch) -- U.S. stock futures dropped Monday as investors questioned whether the measures announced by euro-zone leaders last week would be enough to stem the sovereign debt crisis.
Futures on the Dow Jones Industrial Average declined 91 points to 12,052 and those on the Standard & Poor's 500 index dropped 9.70 points to 1,243.30.
Nasdaq 100 futures fell 16 points to 2,302.5.
The blue-chip Dow index (DJI) rose 1.6% on Friday after euro-zone leaders agreed to closer fiscal ties at a Brussels summit and U.S. consumer confidence hit a six-month high.
The initial enthusiasm over Friday's European deal was starting to give way to concern on Monday. Euro-zone nations committed Friday to an inter-governmental treaty that will make tougher fiscal rules binding , and will include automatic sanctions against budget sinners. While these medium-term measures have been generally welcomed, many analysts note that the measures fail to address the short-term problems of high borrowing costs for heavily indebted euro-zone nations such as Italy.
Moody's Investors Service said Monday it still intends to revisit the ratings of all European Union countries during the first quarter of 2012 given "the continued absence of decisive policy measures." The ratings company said the announcement from last week's summit "offers few new measures and points out that many are similar to previously announced ones."
European stock markets posted losses, with Germany's DAX 30 index down 1.6%.
The euro dropped 0.6% to $1.3279. The dollar index (DXY), which tracks the performance of the greenback against a basket of other major currencies, rose 0.6% to 79.099.
Gold futures came under heavy selling pressure, with the February contract down nearly $31 to $1,686 an ounce in electronic trading on Globex. January crude-oil futures dropped $1.19 to $98.22 a barrel.
No major U.S. economic data are scheduled for release Monday.
Looking ahead, the U.S. Federal Reserve's Federal Open Market Committee will hold a monetary-policy meeting on Tuesday.
Among the companies whose shares are expected to actively trade in Monday's session are Fifth Third Bancorp (FITB) and Goodyear Tire & Rubber Co. (GT).
Fitch Ratings raised the likelihood of a Fifth Third upgrade, citing the regional bank's strong earnings, solid capital-generation capabilities and good liquidity. Shares edged up 0.1% to $12.52 in late trade.
Shortages from Thailand's catastrophic flooding earlier this year could spread to the market for aircraft tires as soon as February or March, Goodyear said Friday. The looming supply squeeze represents a setback for yet another industry after heavy rains swamped many manufacturing plants around Thailand's industrial heart in October. Goodyear's shares slipped 0.3% to $14.50 in late trade.
Watch List:
Sales of new videogames, consoles and accessories in U.S. stores were nearly flat again in November, as merchants cut selling prices in the midst of the holiday-shopping season, according to data tracker NPD Group. New physical sales of games rose 15% in November. "Call of Duty: Modern Warfare 3" from Activision Blizzard Inc. (ATVI) was the most popular game, having launched last month.
Short interest in stocks listed on both Nasdaq and the New York Stock Exchange rose in the second half of November from the prior two-week period, according to the exchanges' semimonthly statistics.
-Edited by Ian Thomson and Corrie Driebusch; write to ian.thomson@dowjones.com and corrie.driebusch@dowjones.com
