US pre-open: Futures fall on global sell-off concerns

US futures plunged on Thursday on continuing concerns about a global sell-off and as investors jumped to the safety of gold.

The Dow Jones Industrial Average was set to open down at least 288 points, while the S&P 500 and the Nasdaq were expected to start the session 35 and 82 points higher respectively.

Initial jobless claims and continuing claims data is out at 1330 GMT, and Federal Reserve chair Janet Yellen will face the Senate Committee on Banking, Housing, and Urban Affairs at 1500 GMT.

Hong Kong catches up on holiday losses

Elsewhere, Hong Kong stocks returned from their Chinese New Year holiday on Thursday, and fell sharply as it caught up with the selloffs that had marked the week so far in Asia.

Asian investors were also responding to Janet Yellen's speech overnight.

The US Federal Reserve chairwoman outlined risks in the economic outlook, which could delay her plans for raising interest rates.

The low-rate climate in the US had fanned the flames in equities markets for a number of years now.

"It's not all rosy in Yellen's eyes. Market volatility is a major consideration," said IG market strategist Bernard Aw.

European stocks took a battering on Thursday, with banks and energy issues pacing the decline, as oil prices slid and investors fled to safety.

West Texas Intermediate was down 3.32% to $26.54 a barrel while Brent was teetering on the edge of $30 a barrel, down 1.56% to $30.36.

The dollar was up 0.89% against the pound, but had dropped 0.44% against the euro and 0.98% against the yen. Spot gold surged 3.18% to $1,235.17

In company news, Twitter shares were in trouble, down over 6% before the bell after it reported flat growth in users for the fourth quarter on Wednesday night.

Meanwhile Cisco Systems jumped nearly 6% after second quarter results announced after the close beat expectations.