Investing.com - U.S. stock markets pointed to heavy losses at the open on Monday, as a brief rally in oil prices faded, prompting investors to dump risky assets such as equities.
The blue-chip Dow futures fell 171 points, or 1.06%, by 11:30GMT, or 6:30AM ET, the S&P 500 futures slumped 21 points, or 1.08%, while the tech-heavy Nasdaq 100 futures dropped 65 points, or 1.59%.
The losses come on the heels of the biggest weekly drop in a month for U.S. equities, with a 3.3% drop for the hard-hit Nasdaq Composite on Friday.
Market sentiment took a hit as oil prices reversed earlier gains amid doubts over the likelihood of a deal between OPEC and on-OPEC producers to cut output happening anytime soon.
U.S. crude was down 63 cents, or 2.06%, at $30.26 a barrel during morning hours in New York, while Brent slumped 52 cents, or 1.54%, to $33.52.
In Europe, markets sank to their lowest level since October 2014, as concerns surrounding global growth and weak oil prices continued to grip markets.
Elsewhere, Asian shares finished mixed, but trade was thin with many regional markets closed for the Lunar New Year holiday.
The dollar index inched up 0.3% to 97.27 in choppy trade, amid ongoing uncertainty over the Federal Reserve's ability to raise interest rates as much as it would like this year.
The U.S. Department of Labor reported Friday that average hourly earnings rose 0.5% last month and were up 2.5% on a year-over-year basis.
The economy created 151,000 jobs last month, the lowest number since September and less than the 190,000 forecast by economists’. Despite the slowdown in jobs growth the unemployment rate fell to 4.9%, the lowest level since February 2008.
The pick-up in wage growth bolstered the outlook for inflation and increased the likelihood that the Federal Reserve could raise interest rates this year.
There is no data scheduled for Monday, nor any Fed speeches. Investors will be looking ahead to comments from Federal Reserve Chair Janet Yellen on Wednesday and Thursday, when she testifies to Congress about the economy and monetary policy.