Stocks set to sink ... again

NEW YORK (CNNMoney.com) -- U.S. stocks were poised for a lower start Friday, extending losses from the previous session's rout that sent the market into correction territory.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were down about 0.7% ahead of the opening bell.

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

U.S. stocks swooned Thursday as fears about the global economic recovery escalated. The Dow dived 3.6%, the S&P 500 tanked 3.9% and the Nasdaq sank 4.1%.

The plunge brought U.S. markets into an official correction, a technical term for when stocks fall more than 10% from their recent highs.

"When you really look at the market, no sector or asset class has been spared," said Anthony Conroy, head trader at BNY ConvergEx Group. "We're down across the board, for a pretty significant correction."

Conroy said U.S. stocks could turn higher later today, however, as domestic fundamentals are strong.

Wall Street reform: In addition to debt problems in Europe, which have weighed on markets for weeks, investors will mull the latest developments in Wall Street reform.

Late on Thursday, the Senate passed a sweeping financial overhaul bill that aims to prevent another financial crisis.

The legislation aims to strengthen oversight on big banks and Wall Street firms and increase consumer protection. The bill needs to be reconciled with the House's version before it is sent to President Obama.

Earnings: Dell (DELL, Fortune 500) reported a jump in quarterly profit after U.S. markets closed Thursday. The PC maker said earnings were driven by strong sales to businesses.

Economy: At 10 a.m. ET, the government will release its monthly state-by-state unemployment report.

World markets: Worries continued to hammer most European stocks in midday trading. Germany's DAX fell 2.2% and Britain's FTSE 100 dipped 1.6%. The CAC 40 in France reversed its early, slight gains and fell 1.7%.

In Japan, the Nikkei fell sharply and ended the day down 2.5%. But China's Shanghai Composite managed to rebound, adding 1%. Hong Kong markets were closed.

Dollar and commodities: The euro reversed its slump after hitting a four-year low earlier in the week, rising 0.4% against the dollar.

The greenback was down 0.3% on the British pound, but it added 0.2% versus the Japanese yen.

U.S. light crude oil for July delivery fell 42 cents to $70.38 a barrel.

Bonds: Treasury prices were mixed early Friday, with the benchmark 10-year note's yield down at 3.22%. Bond prices and yields move in opposite directions.