Investing.com - U.S. stock markets tumbled after the open on Tuesday, as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
During early morning hours in New York, the blue-chip Dow tumbled 358 points, or 2.17%, the S&P 500 sank 43 points, or 2.2%, while the tech-heavy Nasdaq Composite plunged 93 points, or 1.92%.
Asian shares slumped on Tuesday after a pair of reports on China's manufacturing sector added to indications that the world's second largest economy is losing momentum.
The final Caixin/Markit manufacturing purchasing managers’ index for August came in at 47.3, the lowest reading since March 2009.
Meanwhile, the official China's manufacturing purchasing managers' index inched down to 49.7 last month from 50.0 in July, the weakest level since August 2012. A reading below 50.0 indicates industry contraction.
In Europe, Germany's DAX, London's FTSE 100 and France CAC 40 all crashed nearly 3% after disappointing Chinese data added to concerns over global growth prospects.
Financial markets have been roiled since China devalued the yuan on August 11, sparking a selloff in equities, commodities and emerging-market assets.
Later in the session, traders will focus on the U.S. Institute of Supply Management's report on manufacturing growth for a fresh reading on the strength of the economy. The report is due at 10:00AM ET.
Investors were also looking ahead to Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
Elsewhere, crude oil futures retreated on Tuesday, as traders cashed out of the market to lock in gains after prices soared almost $10 a barrel over the past three sessions, the biggest three-day surge since 1990.