US open: Stocks suffer steep falls early on as global sell-off continues

US investors joined in with the global rout of equities on Tuesday with Wall Street stocks suffering their biggest falls in two months.

The Dow Jones Industrial Average fell 0.9%, or 161 points, in early trading in New York, while the S&P 500 slid 0.9% and the Nasdaq dropped 1.1%.

This is the first time the Dow has opened with triple-digit losses since mid-October, according to Marketwatch.

Stocks were being pressured lower by a sell-off across global equity markets with Shanghai’s benchmark index dropping the most since 2009 after China tightened collateral rules for short-term loans. The 5.4% slide was also partly attributable to a bout of profit taking after a recent rally pushed Shanghai stocks a three-year high.

Investors worldwide were also feeling a little cautious following the news Greece has brought forward its presidential elections by two months to December, potentially triggering a snap election. Greek bond yields soared while Athens’ benchmark stock index sank over 11%.

Meanwhile, there was speculation that Federal Reserve officials may remove the “considerable time” phrase from their statement regarding the timeframe of the next interest rate rise as they ready the markets for impending policy tightening.

“The removal of this phrase will be viewed by the markets as a sign that the first rate hike is imminent, which could well spook investors,” said analyst Craig Erlam from Alpari.

Oil prices continued to be in focus after touching a fresh five-year low on Tuesday. West Texas and Brent crude were both down 0.7% at $62.64 and $65.73 a barrel.

On a positive note, US small business optimism soared to an eight-year high in November, with a reading of 98.1 compared to 96.1 a month earlier. The figure, which was published by the National Federation of Independent Business's Small Business Optimism Index, beat the expectation of 96.5 and marked the highest reading since February 2007.

Conn, the electronics and appliance retailer, saw shares plummet after its chief financial officer Brian Taylor stepped down immediately as the company posted a surprise loss in the third quarter. The group also withdrew its 2015 forecast.

Spirit Airlines slipped after the carrier said profitability will decrease in the fourth quarter, as lower fares offset a decline in fuel prices.

Tesla Motors fell in early trading, extending the seven-day slump that has come amid concern cheaper fuel prices will make the company’s luxury electric cars less appealing.

Bluebird Bio rallied after the company said its experimental gene therapy helped patients with an inherited blood disorder go without routine blood transfusions. Bluebird said it plans to talk to US and European Union regulators about speeding up the drug’s development.

Shares of fashion retailer Abercrombie & Fitch jumped after the news that its chief executive officer Mike Jeffries is to retire.