Wall Street Tumbles Pre-Bell as New COVID Strain Threatens Global Economic Recovery

US stocks were set for sharp losses Friday as traders returned from the Thanksgiving holiday amid concerns about a new variant of the coronavirus.

The Dow Jones Industrial Average futures slumped 811 points or 2.3%, S&P 500 futures declined 80 points or 1.7%, and Nasdaq futures fell 178 points or 1.1%.

A new "potentially vaccine-resistant" variant has been discovered in South Africa, prompting countries, including Britain and France, to impose flight and travel bans against South Africa and surrounding countries.

Oil prices tumbled, with front-month global benchmarks Brent crude and US West Texas Intermediate crude both down more than 5%, on concerns about the potential impact on demand of the new coronavirus variant.

There are no major economic data due for release.

In other world markets, Japan's Nikkei closed 2.5% lower, Hong Kong's Hang Seng closed 2.6% lower, and China's Shanghai Composite closed 0.6% lower. Meanwhile, UK's FTSE 100 fell 3%, and Germany's DAX declined 3.1% in Europe's early afternoon session.

On the winning side, Petrobras PBR shares were 1.9% higher after the Brazilian oil firm said it plans to invest $68 billion under its 2022-2026 strategic plan.

On the losing side, Pinduoduo PDD shares fell 19% even after the company posted improved Q3 earnings but revenue missed analyst estimates.