Stocks set for big slide

NEW YORK (CNNMoney.com) -- U.S. stocks were set to open lower Tuesday amid growing worries about whether a massive European aid package will be enough to fix the region's debt woes.

At 8:26 a.m. ET, Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were all sharply lower.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins.

U.S. stocks joined a worldwide rally Monday, posting their best day in nearly 14 months.

The source of the enthusiasm was a nearly $1 trillion European rescue package aimed at stabilizing the euro and providing aid to the regions's debt-laden governments.

But confidence in the EU bailout began to fade Tuesday. Worries that it would not be enough to fix the problems facing many European governments led to a drop in world markets.

"We know there's not going to be any defaults for now, but that fear factor still remains," said Peter Cardillo, chief market economist at Avalon Partners.

Cardillo said he thinks the market will hold in a short-term trading range until fear that the debt crisis will spread is fully contained.

"There are definitely some reservations about what the bailout plan is going to do to economic growth," Cardillo said. "It's a huge price tag for Europe."

World markets: Stock markets around the world fell on the euro zone news. In afternoon trading in Europe, France's CAC 40, Britain's FTSE 100 and Germany's DAX were all lower.

In Asia, Japan's Nikkei index closed 1.1% lower and the Hang Seng in Hong Kong ended down 1.7%.

Economy: Wholesale inventories, due out from the Commerce Department after the start of trade, are expected to have risen 0.5% in March, according to a consensus of economists surveyed by Briefing.com. Inventories rose 0.6% in February.

In Washington, the Senate Energy Committee will hold a hearing on offshore oil drilling. Later in the day, the Senate Environment Committee will hear testimony on the Gulf oil spill.

The House Financial Services Subcommittee on Capital Markets will hold a hearing on last Thursday's stock market roller coaster ride, in which the Dow fell nearly 1,000 points in less than 10 minutes before rebounding. Unusual trading in more than 300 stocks resulted in the Dow's biggest-ever intraday sell-off.

Companies: Walt Disney (DIS, Fortune 500) is due to report results after the close of trade . The Dow component is expected to have earned 45 cents per share, up 6% from the 43 cents it earned a year earlier.

Dollar and commodities: The dollar was up 0.9% against the euro and 0.5% on the British pound. The greenback was down 1% on the Japanese yen.

U.S. light crude oil fell $1.09 to $75.71 a barrel. COMEX gold for June delivery jumped $17.60 to $1,218.40 per ounce.

Bonds: Treasury prices were higher early Tuesday, pushing the benchmark 10-year yield down to 3.48%. Bond prices and yields move in opposite directions.