Stocks set to extend slump

NEW YORK (CNNMoney.com) -- Stock futures tumbled early Friday after a huge loss at insurer AIG raised worries about the credit crunch and investors awaited another wave of economic reports.

At 5:01 a.m. ET, Nasdaq and S&P futures were lower, indicating sharp losses at the start for Wall Street.

Stocks tanked Thursday as investors fretted about a U.S. recession. A wave of economic data, including reports on personal income and spending and consumer sentiment, will give investors another look at the state of the economy.

Financial shares are likely to be pressured after AIG (AIG, Fortune 500) reported a massive $5.3 billion quarterly loss after the close Thursday. The credit crunch slammed the company, which took $11 billion in writedowns during the quarter.

In the tech sector, computer maker Dell (DELL, Fortune 500) reported weak quarterly results late Thursday. Dell shares fell 4% in after-hours trading.

Overseas markets tumbled as investors worried about the ongoing credit crisis. Japan stocks finished the session lower and European stocks fell in early trading.

Also hanging on investors were surging oil prices and the weak dollar. Light, sweet crude for April delivery briefly exceeded $103 a barrel for the first time in electronic trading. The euro, meanwhile climbed to an all-time high of $1.5238 in early European trading.