Another pounding for stocks

LONDON (CNNMoney.com) -- U.S. stocks are likely to take another pounding Thursday, even as Treasury Secretary Henry Paulson attempted to alleviate fears about the economic fallout from the turmoil.

At 4:31 a.m. ET, Nasdaq and S&P futures were lower, with a comparison to fair value pointing to a negative start for Wall Street.

Paulson told the Wall Street Journal that the turmoil in financial markets will slow U.S. economic growth but should not spark a recession.

In a report published Thursday, he told the newspaper that some funds or businesses may go under as a result of the turmoil, but that he expects the U.S. economy to keep growing.

Stocks have been on a downward spiral with no signs of the credit situation improving. The blue-chip Dow Jones industrial average, which tracks 30 big U.S. companies, fell to a four-month low Wednesday.

Investors rushed to safe-haven investments like Treasurys on Wednesday, leading the Fed to pump another $7 billion into the banking system.

Taking a cue from Wall Street, overseas stocks plunged overnight. Stocks in Asia plunged, and major European markets fell sharply after the open.

In major corporate news, biotech Amgen (Charts, Fortune 500) said late Wednesday that it will cut 14 percent of its staff and warned that 2007 earnings won't meet forecasts.