U.S. stocks pare losses amid global rout

U.S. stocks trimmed early losses after plummeting in the opening on Monday, as a rout in global markets continued to intensify.

At midday, the Dow Jones Industrial Average plunged 206.28 points, or 1.25 percent, to 16,253.47. The S&P 500 dropped 26.19 points, or 1.33 percent, to 1,944.70. The Nasdaq Composite Index declined 31.12 points, or 0.66 percent, to 4,674.92.

The New York Stock Exchange invoked a rule saying market makers don't have to disseminate price indications before the opening bell in an effort to make it easier and faster to open stocks on a volatile trading day, according to Reuters.

The Chinese stock markets had their worst day in eight years with the benchmark Shanghai Composite Index tumbling 8.49 percent to close at 3209.91 points.

It has been reported that weak economic data have fueled worries that a drop-off in Chinese growth could cause a global slowdown.

European equities also dived on Monday following previous session's deep decline, as the Stoxx Europe 600 was down over 6 percent and Germany's DAX fell 4 percent.

U.S. stocks continued to plunge Friday, with the Dow nosediving more than 500 points, as a broad-based heavy sell-off in global stock markets weighed on U.S. market.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, soared 46.45 percent to end at 28.03 Friday. Enditem