U.S. stock index futures were lower on Tuesday as concerns over a new strain of pneumonia in China spooked risk investment worldwide.

At around 2:15 a.m. ET, Dow futures dropped 96 points, indicating an implied negative open of more than 125 points. Futures on the S&P 500 and Nasdaq were also lower.

The outbreak of a new coronavirus in China has killed four people with confirmed cases exceeding 200 ahead of the Lunar New Year holiday, during which hundreds of millions of people are expected to travel. Late on Monday, Chinese authorities confirmed that the virus is contagious.

Experts called back the economic fallout from the deadly Severe Acute Respiratory Syndrome (SARS) crisis in 2003, and the news sent investors fleeing from risk assets in Asia overnight, a trend which looks set to continue into the open on Wall Street.

U.S. stock markets were closed on Monday for Martin Luther King Jr. Day holiday, but closed Friday’s session slightly higher to cap off another record-setting week.

The International Monetary Fund (IMF) on Monday downgraded its global economic growth forecast from 3.4% to 3.3% for 2020. The U.S. economy is projected to grow by 2.0% this year, a downward revision of 0.1 percentage points compared with the IMF’s October 2019 forecast.

In corporate news, Boeing is in talks with banks to borrow $10 billion amid the spiraling costs of two crashes involving its beleaguered 737 MAX aircraft.

Investors will be watching the U.S. Redbook data for January, due at 8:55 a.m. ET on Tuesday.

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