US open: Stocks fall ahead of presidential debate

US stocks dropped on Monday as investors exercised caution ahead of the first US presidential debate and as OPEC met in Algeria.

The Dow Jones Industrial Average fell 0.80% to 18,116.06 points, the S&P 500 slid 0.68% to 2,149.94 points and the Nasdaq declined 0.81% to 5,262.54 points.

At the same time oil prices gained as OPEC members met informally on the sidelines of the International Energy Forum in Algeria which is held from Monday until Wednesday. Ahead of the meeting, Algeria’s energy minister Noureddine Bouterfa said on Sunday that all options for a production cut or freeze were on the table.

West Texas Intermediate crude rose 2.04% to $45.41 per barrel and Brent increased 2.07% to $46.86 per barrel.

Meanwhile, Donald Trump and Hillary Clinton will come face-to-face at the US presidential debate later, which could pave the way for the outcome of the November election result.

“With Donald Trump closing the gap with Hillary Clinton in latest polls, the debate is becoming more interesting than any other TV show,” said FXTM chief market Strategist Hussein Sayed.

“America's direction, achieving prosperity and securing America are the three major topics at the first presidential debate. Investors are becoming increasingly concerned on how to tweak their portfolios before Nov 8.”

On the data front, US new home sales fell a monthly 7.6% to 609,000 units in August following a12.4% increase in July, the Commerce Department revealed. Economists had expected an 8.3% drop to 597,000.

In company news, Pfizer shares slipped as the pharmaceutical group said it has decided not to split into two separate publicly-traded companies following an extensive evaluation.

Philadelphia-based Chemtura surged after German specialty chemical group Lanxess announced plans to buy its US rival.

Twitter edged lower following a report last week that it was talking to a number of suitors about a potential sale.