Wall Street Set For Losses As Brexit Backlash Continues

 Wall Street was set for another downbeat session on Monday, as shock waves from the U.K.'s Brexit vote last week continued to chill the investing mood in global financial markets.

Futures for the Dow Jones Industrial Average dropped 151 points, or 0.9%, to 17,096, while S&P 500 index futures fell 18.1 points, or 0.9%, to 2,000.50. Nasdaq 100 index futures lost 43 points, or 1%, to 4,219.25.

The losses follow a plunge on Friday, when investors shunned anything considered a risky asset. The selloff came after the U.K. unexpectedly voted to leave the European Union.

That vote sparked a drop of more than 650 points for the Dow average at one point, before it trimmed losses to close 611 points, or 3.4% lower. The Nasdaq Composite Index and S&P 500 index lost 4.1% and 3.6%, respectively.

"There is little doubt that global monetary policy will have to adjust to this historic decision, and with markets now pricing in a 50% chance of a July rate cut from the [Bank of England], the idea of a [Federal Reserve] rate hike appears dead in the water," said Joshua Mahony, market analyst at IG, in a note.

Fed Chairwoman Janet Yellen said ahead of Thursday's historic referendum in the U.K. that a Brexit was one of the risks facing the global economy that could justify a cautious approach to raising interest rates. According to the CME Fed Watch tool, there's currently a 0% probability of a Fed rate increase in July.

Banking blues: Banks were among the biggest decliners in Friday's Brexit-fueled selloff and were mostly set for more losses on Monday.

Shares of Bank of America Corp. lost 1.3% premarket, while J.P. Morgan Chase & Co. fell 0.9%, and Goldman Sachs Group Inc. slipped 0.6%.

Other movers and shakers: U.S.-listed shares of Randgold Resources Ltd.(RRS.LN) climbed 4.1% ahead of the bell as gold continued to rise in a post-Brexit flight to safety.

Economic news: Data for May advance trade in U.S. goods come out at 8:30 a.m. Eastern Time, followed by Markit's flash reading on the U.S. services purchasing managers index for June, due at 9:45 a.m. Eastern.

There were no Fed speakers scheduled to talk on Monday. See:

Other markets: The pound was hit hard again, sliding to a 31-year low of $1.3154 from $1.3676 late Friday in New York. Sterling plunged to as low as $1.3230, the lowest since 1985, early Friday after it became clear the U.K. had voted to exit the EU.

The Brexit fallout continued to keep European stock markets under pressure. The Stoxx Europe 600 index was down 3.3%. The FTSE 100 index was off 2% with the main British political parties, the Conservatives and Labour, in turmoil after the referendum.

Stocks in Asia mostly rebounded. Japan's Nikkei 225 index rallied 2.4%, helping lead much of Asian equities higher.

The dollar rose against most other major currencies, while oil prices moved lower.

The yield on 10-year U.K. government bonds dropped below 1% for the first time ever on Monday.