U.S. stock-index futures retreated as signs lawmakers will fail to agree on cutting the budget deficit of the world’s largest economy added to concern that Europe’s debt crisis is threatening global economic growth.

Futures on the Standard & Poor’s 500 Index expiring in December dropped 1.6 percent to 1,194.10 Monday at 8:55 a.m. London time. The benchmark equity gauge lost 3.8 percent last week, the biggest retreat in two months, as Spanish, French and Italian bond yields rose and Fitch Ratings said Europe’s debt crisis poses a threat to American banks.