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The
S&P 500 and Nasdaq composite indexes were poised to slip into
correction territory, or 10 percent off their 52-week highs. The
Dow Jones industrial average and the Nasdaq 100 slid into a
correction zone on Friday.
The Dow was set to open below 16,000 for the first time since
February 2014.
The lack of new measures from Beijing to support Chinese stocks
following an 11 percent drop last week sparked a free-fall in
global equities and a selloff in oil and commodities.
Oil fell more than 4 percent to a 6-1/2-year low, while London
copper and aluminum futures hit their lowest since 2009.
Oil majors Exxon and Chevron fell about 4 percent in premarket
trading. U.S. oil and gas stocks have already lost about $310
bln of market value this year.
"Until we have some sign that China and the emerging markets
aren't being sucked into some vortex from which they can't
recover ... it is unlikely this selloff will stem," said Mark
Luschini, chief investment strategist at Janney Montgomery Scott
in Philadelphia.
The dollar index fell 1.1 percent to $93.92 as the
probability of a September rate hike receded.
S&P 500 e-minis were down 76.75 points, or 3.89 percent,
with 1,007,394 contracts traded at 8:08 a.m. ET.
Nasdaq 100 e-minis were down 208.5 points, or 4.96 percent, on
volume of 131,513 contracts.
Dow e-minis were down 685 points, or 4.16 percent, with
124,196 contracts changing hands.
Wall Street's selloff last week showed investors are becoming
increasingly nervous about paying high prices for stocks at a
time of minimal earnings growth, tumbling energy prices, and an
expected rate hike by the U.S. Federal Reserve.
European stocks were down 4.5 percent, wiping out more than 400
billion euros ($460 billion) of market value. Asian stocks
slumped to 3-year lows as the 3-month-long rout in Chinese
equities threatened to get out of hand.
Apple shares slid 5.8 percent to $99.61 in premarket trading and
were set to open at their lowest this year.
Netflix fell 12 percent to $91.50.
Alibaba fell 8.9 percent to $63.99, well below its IPO
price of $68, making it the second high-profile tech company to
fall below its IPO price in the past week after Twitter on
Thursday.
(Reporting by Tanya Agrawal; Editing by Ted Kerr)
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