US STOCKS-Wall St set to slip on rising virus cases; eyes on stimulus deal

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* Global risk rally takes a breather
* New restrictions outweigh stimulus optimism
* Tesla launches $5 bln share sale
* Futures down: Dow 0.32%, S&P 500 0.40%, Nasdaq 0.25%

(Adds comment, updates prices)
By Shriya Ramakrishnan
Dec 8 (Reuters) - U.S. stocks were set to dip at the open on
Tuesday as surging coronavirus cases threatened to further
hamper a slowing economic revival, while investors awaited
progress in ongoing negotiations for a fresh COVID-19 relief
package.
Most residents in California, the nation's most populous
state, faced new restrictions on Monday after record coronavirus
case numbers and hospitalizations, while officials in New York
warned similar restrictions could come into effect soon.
Nationwide, COVID-19 infections are at their peak, with an
average of 193,863 new cases reported each day over the past
week, according to a Reuters tally of official data, and health
officials warned that the worst is yet to come. "The rise in cases across the U.S. seems finally to have
galvanized American lawmakers into action, although the $900
billion discussed is certainly well below the mooted levels of
late summer, and even this amount may not make it through
unscathed," said Chris Beauchamp, chief market analyst at IG.
Market participants are closely watching whether
policymakers will be able to clinch an agreement on a
long-awaited COVID-19 relief bill and a $1.4 trillion spending
bill, with Friday eyed as a possible deadline to avoid a
government shutdown. The U.S. Congress will vote this week on a one-week stopgap
funding bill to provide more time for lawmakers to reach a deal
on both spending and pandemic relief.
At 08:40 a.m. ET, Dow E-minis 1YMcv1 were down 95 points,
or 0.32%, S&P 500 E-minis EScv1 were down 14.75 points, or
0.40%. Nasdaq 100 E-minis NQcv1 were down 31 points, or 0.25%.
The S&P 500 .SPX and the blue-chip Dow .DJI fell on
Monday, but the Nasdaq .IXIC closed at record levels as
investors returned to technology mega-cap stocks that have
thrived from the pandemic-induced shift to work from home.
Positive developments related to the COVID-19 vaccine have
in the recent weeks helped investors look past the surge in
infections and raise bets on a steady economic recovery next
year.
Pfizer Inc PFE.N rose 0.6% in premarket trading as it
cleared the next hurdle in the race to get its COVID-19 vaccine
approved for emergency use, after the U.S. health regulator
released documents that did not raise any new issues about its
safety or efficacy. Tesla Inc TSLA.O fell about 2% after it unveiled plans to
raise up to $5 billion in a share offering. Home builder Toll Brothers Inc TOL.N slipped 3.3% after a
disappointing home delivery forecast for the first quarter.