US STOCKS-Wall St set to slide after Trump's positive COVID-19 test

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* News could hurt Trump's election campaigning ability -
analysts
* U.S. jobs growth slows more than expected in September
* Banks track Treasury yields lower
* Airlines tumble as stimulus deal remains elusive
* Futures off: Dow 1.41%, S&P 1.42%, Nasdaq 2.01%

(Adds comments, updates price)
By Sagarika Jaisinghani and Devik Jain
Oct 2 (Reuters) - Wall Street's main indexes were set to
tumble on Friday after President Donald Trump tested positive
for COVID-19 weeks before the election, with Washington's
failure to reach a new fiscal stimulus deal also hurting
sentiment.
Trump's tweet that he and first lady Melania had contracted
the disease rankled global financial markets and sent investors
scurrying to the perceived safety of the dollar, yen and gold.
MKTS/GLOB
Analysts said the news could hurt Trump's campaigning
ability and jack up market volatility at a time when investors
were already skittish after a chaotic presidential debate
heightened fears of a messy transfer of power. "There are more questions than answers right now (and) stock
markets tend to sell first and ask questions later," said Ryan
Detrick, senior market strategist at LPL Financial in Charlotte,
North Carolina.
"Until there's more concrete news (around) how he's feeling,
it's probably going to be tough for the market to bounce back
significantly."
A senior White House official said the president is "not
incapacitated" and will work from his residence. At 8:36 a.m. ET, Dow e-minis 1YMcv1 were down 390 points,
or 1.41%, S&P 500 e-minis EScv1 were down 47.75 points, or
1.42%, and Nasdaq 100 e-minis NQcv1 were down 233 points, or
2.01%.
The risk-off mood sparked broad-based premarket declines,
with banks GS.N JPM.N MS.N tracking Treasury yields lower
and tech mega-caps, which generally tend to outperform at a time
of economic uncertainty, slumping between 1.9% and 2.9%. US/
Tesla Inc TSLA.O slipped 4.3% even as it reported record
vehicle deliveries in the third quarter. Trading in U.S. stocks turned choppy last month, with the
S&P 500 snapping a five-month gaining streak, as economic data
indicated a long road to pre-pandemic levels and Congress
deliberated over the next round of fiscal stimulus. With a bipartisan deal eluding House Speaker Nancy Pelosi
and the White House, the U.S. House of Representatives on
Thursday approved a $2.2 trillion Democratic plan on fiscal aid,
but objections from top Republicans are likely to doom the plan
in the Senate. Airlines including United Airlines Holding Inc UAL.O ,
Delta Air Lines Inc DAL.N , JetBlue Airways Corp JBLU.O and
American Airlines Group Inc AAL.O fell between 3.1% and 4.2%.
Meanwhile, data on Friday showed U.S. job growth slowed more
than expected in September as the recovery from the COVID-19
slump shifts into lower gear. The Labor Department's closely
watched report was the last before the Nov. 3 election.
After Trump said he had coronavirus, online gambling site
Betfair suspended betting on the outcome of the election.
Betfair's odds had previously shown Democratic challenger Joe
Biden's probability of winning at 60% on Wednesday. The CBOE volatility index .VIX , known as Wall Street's
fear gauge, shot up to a one-week high.