Nov. 5 (Bloomberg) -- U.S. stock-index futures declined, following the biggest presidential Election Day rally in 24 years, as concern the economy will deteriorate overshadowed Democrat Barack Obama's victory.

American Express Co. and JPMorgan Chase & Co. slipped more than 1 percent in Europe. A report today may show that service industries shrank in October for the sixth time in 10 months as a lack of credit and slowing sales caused companies to cut spending and payrolls.

Futures suggested the Standard & Poor's 500 Index will drop after an 18 percent rebound from a five-year low on Oct. 27. The benchmark for U.S. equities has still lost 32 percent this year, the steepest annual retreat since 1937.

``The rally has already taken place as polls made it clear who would be elected,'' said Gilles Glicenstein, chief executive officer of BNP Paribas Asset Management in Paris, which oversees $419 billion in assets. ``Now, people will wait to see what happens. We're in the heart of the recession now.''

S&P 500 futures expiring in December dropped 1.7 percent to 986.6 as of 9:35 a.m. in London. Dow Jones Industrial Average futures retreated 1.3 percent to 9,464 and Nasdaq-100 Index futures decreased 1.5 percent to 1,360.

Last month's sell-off erased more than $9.5 trillion from the value of stocks worldwide, almost one-third of the total value wiped out this year, as credit-related losses and writedowns by financial firms approached $700 billion.

American Express, the largest U.S. credit-card company by purchases, lost 1.7 percent to $29.32 in Germany. JPMorgan, the nation's biggest bank by market value, declined 1.4 percent to $41.59.

Service Industries

The Institute for Supply Management's non-manufacturing index, which covers almost 90 percent of the economy, dropped to 47 from 50.2 in September, according to the median estimate of 69 forecasts in a Bloomberg News survey. A reading of 50 is the dividing line between growth and contraction. The report is due at 10 a.m. New York time.

The S&P 500 Index may be on the cusp of a rally by Inauguration Day in January, based on the speed of its tumble from last year's peak and the time it took stocks to gain before recessions ended in 1975, 1982 and 1991, data compiled by Bloomberg show. This year's plunge in stocks suggests that equity investors anticipate an economic contraction as severe as the one that began under Richard Nixon that will end in July.

Should the current recession be as severe as the one in the 1970s, it will last until July 2009, using the start dates given by Feldstein and Soss.

Next Bull Market

Based on the stock market's history of anticipating economic recoveries, the S&P 500 may embark on its next bull market in February, about a month after Obama's inauguration on Jan. 20.

Verizon Communications Inc. may be active. The Federal Communications Commission conditionally approved Verizon Wireless's $28.1 billion purchase of Alltel Corp., setting the stage for Verizon to surpass AT&T Inc. as the biggest U.S. wireless carrier. The stock didn't trade in Europe.

Sprint Nextel Corp., the third-largest U.S. phone company, won approval from the Federal Communications Commission to combine its high-speed wireless business with Clearwire Corp., clearing the way for the first national WiMax network. The shares didn't trade in Europe.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.

Last Updated: November 5, 2008 04:39 EST