US open: Stocks slide as airlines cancel flights to China

As of 1530 GMT, the Dow Jones Industrial Average was down 1.09% at 28,543.60, while the S&P 500 was 0.74% weaker at 3,259.47 and the Nasdaq Composite started out the session 0.69% softer at 9,234.71.

The Dow opened 315.84 points lower on Friday after closing higher in the previous session when stocks were buoyed by a solid rally late in the session despite the World Health Organisation declaring the Wuhan coronavirus a global emergency.

On Friday, the Chinese National Health Commission revealed that the number of confirmed cases of the virus had risen to 9,692, while the death toll had reached 213.

That followed the World Health Organization's declaration of a global health emergency overnight, citing concerns about the pneumonia-like virus's continued spread to other countries.

The move was necessary in order for the United Nations health agency to mobilise both financial and political support to stem contagion.

Oanda's Craig Erlam said: "The worrying thing is how much worse the numbers could look when the markets reopen next week, given just how rapidly they're rising. Huge efforts are being made to contain the virus and yet, the numbers are already massive.

"It's clear there's going to be an economic price as well as various businesses rightfully put safety ahead of profit. It's just extremely difficult to quantify what that will be at this moment as we don't know how long it will last and how much worse it will get. Companies are seeing their share prices take a beating though as investors fear the worst and hope for better."

Also in focus, the United Kingdom would officially exit the European Union at 2300 GMT in what would be one of the most dramatic political and economic shifts in modern-day Europe.

Britain will immediately enter into a "transitional period" wherein it remains a member of both the single market and customs unions as it looks to strike a long-term free trade deal with the bloc.

On the macro front, personal income and spending was a tad weaker than expected at the end of 2019 although economists were confident that consumption would pick back up over coming months.

According to the Department of Commerce, in seasonally adjusted terms, in December personal incomes and spending grew at a month-on-month pace of 0.2% and 0.3%, respectively.

Elsewhere, manufacturing activity in the Midwest region sank to its lowest level in more than four years this month, according to the Chicago Purchasing Managers Index.

The index fell to 42.9 in January from 48.9 in December - its lowest level since December 2015. Economist had expected a small dip to 48.5.

Lastly, the final reading of the University of Michigan's consumer sentiment survey came to 99.8 - up from an initial 99.1 and the reading of 99.3 recorded back in December.

In corporate news, Caterpillar shares were down 0.93% in early trade despite topping expectations in its fourth-quarter earnings as shares in the trade bellwether were being battered by the coronavirus outbreak in China.

Chevron slumped 3.64% and Exxon Mobil shares slid 3.38% after both energy giants posted some disappointing fourth-quarter results.

To take note of as well, in remarks to Marketwatch.com, technical analysis legend, Ralph Acampora, said he was expecting a 10.0% correction in the stock market or perhaps a bit more.

"‘I think it’s going to be a little deeper. I am looking at 10% maybe a little bit more even," Acampora reportedly said.