S&P 500 futures are now down 0.7% with Nasdaq futures down 1.0% on the day. It’s not looking good for risk sentiment as any hope for relief from the US CPI report yesterday is starting to unravel. There were already signs in US trading yesterday of that with Wall Street briefly paring gains after the inflation numbers but still managed to salvage a close higher, at least for tech shares.

Now, we’re seeing tech lead the downside momentum ahead of European trading. But Dow futures are also still lower, down 0.4%.

That’s setting up for a more defensive risk mood going into the session ahead as the risk selloff threatens to run deeper on the week.