Among the big companies slated to release quarterly results this week are Microsoft, Amazon and Colgate-Palmolive. AT&T sank after reporting weak subscriber numbers, and chipmaker Texas Instruments fell sharply after reporting slumping demand. The spiral has already erased this year's record gains on United States markets. They get more insight into how the American economy is doing later in the day when the us government reports on economic growth during the third quarter.
The Cboe Volatility Index, the most widely followed gauge of expected near-term gyrations for the S&P 500, finished little changed at 24.16.
As we wrote last week, despite the broader market's resilience, most of the U.S. stock market has been battered this year.
The S&P 500, the benchmark for many index funds, is now 10 percent below the peak it reached in September.
The Dow Jones Industrial Average sank 500 points Friday, or 2 percent, putting it in the red for the year again. The indexes were pulled down by Amazon, Facebook and Netflix, all of which lost more than 5 percentage points in value, while Google-parent Alphabet plummeted 4.8 percent.
Twitter soared 12.1 percent to $30.85 and electric auto maker Tesla jumped 7.8 percent to $311 after releasing their quarterly reports, while video game maker Take-Two vaulted 7.9 percent to $1219.75 after strong reviews for its latest game, "Red Dead Redemption 2".
But other large industrial companies in the Dow fell, including Caterpillar and 3M which dropped 5.6 per cent and 4.2 per cent, respectively.
Rising rates and the trade dispute could both impair economic growth, and some encouraging economic news helped stabilize markets.
But more recently stocks had been placid.
Following the heavy falls on global markets, ASX futures slumped by nearly 100 points, indicating falls of more than 2% on the local index today. Shares of the tech giant jumped 5.8 per cent to US$108.30 (NZ$166.03). Hong Kong's Hang Seng index dropped 0.4 percent and the Kospi in South Korea gave up 0.4 percent.
Microsoft, Intel, Alphabet and Amazon, all due to report this week, were down between 0.2 percent and 2.4 percent.
Wall Street was caught in another wave of aggressive selling overnight, as volatility surged and investors continued to dump technology stocks. Japanese telecoms and energy giant Softbank lost 4.4 percent.
The French CAC 40 jumped 1.6 per cent and Germany's DAX added 1 per cent.
Bond prices rose, sending the yield on the 10-year Treasury note down to 3.17 percent from 3.19 percent late Monday.
Commodities: Brent crude -1.2pc at $US75.51/barrel, spot gold +0.2pc $US1,232.43/ounce, iron ore +0.6pc at $US74.73/tonne. Brent crude, the benchmark for global oil prices, added 0.9 percent to close at $77.62 a barrel in London. Silver gained 0.5 percent to $14.70 an ounce. Australia's S&P/ASX 200 was flat.
The dollar fell to 111.54 yen from 112.61 yen on Thursday.
But it has risen to 54.8 British pence and 62 Euro cents, after some weaker-than-expected European economic figures. Copper dipped 0.1 percent to $2.75 a pound. The plan expands its targeted deficit to 2.4 percent of GDP next year, three times more than promised by the previous government.