* Oil prices reverse course to trade lower
* Viacom lower after revenue misses estimates
* Regeneron Pharma hit by weak sales forecast
* Futures down: Dow 147 pts, S&P 17 pts, Nasdaq 40.5 pts (Adds details, changes comment, updates prices)
By Abhiram Nandakumar
Feb 9 (Reuters) - U.S. stock indexes were set to open lower on Tuesday, as cautious investors doubled down on safer assets amid increasing concerns of a sustained slowdown in global economic growth.
Gold prices steadied near seven-month highs, while yields on Japan’s 10-year government bond slipped into negative territory for the first time ever.
Japan’s Nikkei nosedived 5.4 percent. Global markets were also lower, again led by a fall in European bank stocks. Chinese markets are closed through the week for the Lunar New Year. Oil prices gave up early gains to trade down 1 percent as the U.S. market neared the open.
“There is a high probability of a further correction in equity prices, led by banking and energy stocks,” said Lorne Baring, managing director of B Capital Wealth Management, adding that looming defaults in the energy sector would hurt banks.
Wall Street fell on Monday, after a late rally in energy stocks failed to stem the selloff in the financial sector.
“Investors should be concerned that the behavior was similar to January’s when macro trends dominated and late day short squeezes prevented the type of liquidation selling necessary for a sustainable low,” said Michael O‘Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
U.S. stock indexes have failed to sustain several attempts at rallies this year, with falling oil prices being a major influence.
At 8:26 a.m. ET (1326 GMT), Dow e-minis were down 147 points, or 0.92 percent, with 64,103 contracts changing hands.
S&P 500 e-minis were down 17 points, or 0.92 percent, with 416,600 contracts traded. Nasdaq 100 e-minis were down 40.5 points, or 1.02 percent, on volume of 70,053 contracts.
Corporate reports have not offered much relief. Profits at S&P 500 companies are expected to have fallen 4.1 percent in the fourth quarter, according to Thomson Reuters I/B/E/S.
Shares of Viacom were down 5.3 percent at $39.65 premarket after its revenue missed estimates.
Regeneron Pharma fell 7 percent to $363.01 after it forecast slowing sales growth for its blockbuster eye drug.
U.S. Federal Reserve Chair Janet Yellen is slated for a semi-annual testimony before Congress on Wednesday and Thursday, which could give investors an insight into the central bank’s thinking.
Expectations are rife that the Fed, which raised interest rates in December, will slow the pace of further hikes or suspend the program to normalize rates until further signs of global economic stability.
President Barack Obama is scheduled to present his final budget as U.S. leader later in the day. Disney and Tesla are slated to report results after the bell. (Reporting by Aastha Agnihotri and Abhiram Nandakumar in Bengaluru; Editing by Savio D‘Souza)