US STOCKS-Futures fall after Fed's sobering outlook, fears of second virus wave

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window)
* Futures fall: Dow 1.85%, S&P 1.47%, Nasdaq 1.09%

By Medha Singh
June 11 (Reuters) - U.S. stock futures extended declines on
Thursday, a day after the Federal Reserve's economic forecast
confirmed that the pain from the coronavirus outbreak will be
felt for years, with investors also nervous about a second wave
of infections.
The S&P 500 and the Dow ended lower on Wednesday as Fed
Chair Jerome Powell acknowledged it could take years for the
millions of people laid off due to COVID-19, to get back to
work.
The U.S. central bank reiterated its pledge to provide years
of extraordinary support to the economy battered by the
pandemic. A Labor Department report due at 8:30 a.m. ET on Thursday is
expected to show another 1.55 million people applied for state
unemployment benefits for the week ended June 6. Conviction that the easing of lockdowns and massive stimulus
would help the economy bounce back quickly to pre-pandemic
levels has been pivotal in the S&P 500 .SPX being about 5%
below its record high.
Wall Street's fear gauge, the CBOE volatility index .VIX
briefly crossed 30 points for the first time since June 1. New
infections are rising slightly in the United States after five
weeks of declines as commerce and movement picks up across the
country, a Reuters tally showed. At 6:22 a.m. ET, Dow e-minis 1YMcv1 were down 500 points,
or 1.85%. S&P 500 e-minis EScv1 were down 46.75 points, or
1.47% and Nasdaq 100 e-minis NQcv1 were down 110 points, or
1.09%.
Shares of banks, which tend to benefit in a higher rate
environment, slipped on Thursday as Fed policymakers saw the key
overnight interest rates remaining near zero through at least
2022. Bank of America Corp BAC.N , Citigroup Inc C.N and
JPMorgan Chase & Co JPM.N fell between 4.0% and 4.8% in
premarket trading.
Online food delivery firm Grubhub Inc GRUB.N rose 7.5%
after Europe's Just Eat Takeaway.com NV TKWY.AS agreed to buy
its U.S peer in an all-stock deal for $7.3 billion. The deal, if
completed, would create the world's largest food delivery
company outside China.