Wall Street rally set to fizzle out as Evergrande worries persist

US stock indexes were set to open lower on Friday following a strong two-day rally, as worries persisted about the spillover from debt-laden China Evergrande, while Nike tumbled after cutting its sales forecast.

Big banks including JPMorgan, Citigroup, Morgan Stanley and Bank of America Corp slipped about 0.5 per cent, while oil majors Exxon Mobil and Chevron Corp were down 0.4 per cent and 0.3 per cent, respectively, in premarket trading.

The banking sub index and the S&P energy sector have gained nearly 2.5 per cent and 3.8 per cent so far this week.

Wall Street’s main indexes have been roiled this month by fears of a sooner-than-expected tapering by the Federal Reserve and the crisis at Evergrande, which on Thursday missed an interest payment deadline and has entered a 30-day grace period.

The benchmark S&P 500 is now on course to snap a seven-month gaining streak.