After a jarring and brutal week for stocks, markets are primed for further pounding in the week ahead, with China, oil and now the start of the corporate earnings season all posing potential hazards.
Dow futures opened about 90 points or 0.55 percent lower in early Asian trade on Monday, implying triple digit losses for the Dow Jones industrial average. S&P futures shed about 10 points.
On Friday, stocks closed out their worst start to the year ever. The S&P 500's sharp 6 percent decline in the past week was the steepest weekly loss since summer 2011 and wiped out more than $1 trillion in market cap. The S&P closed at 1,922, and is now nearly 10 percent below its May all-time high. The Dow, also in a more than 10 percent correction, lost more than 1,000 points for the week to 16,346, while the Nasdaq dropped 7.2 percent to 4,643.
"The U.S. (jobs) data came in pretty good, but there's still a lot of uncertainty coming out of China. Oil prices are breaking new lows as well," said Gina Martin Adams, institutional equity strategist at Wells Fargo Securities. "These are the same issues as in August coming up again. I think ultimately until oil bottoms, stocks are going to struggle. ... Until we get a bottom in oil, it's going to be very tough."