U.S. stocks extend losses following global rout

U.S. stocks traded lower in the morning session Monday as investor sentiment was dented by a broadly-based stock decline around the world.

By midday, the Dow Jones Industrial Average fell 142.78 points, or 0.78 percent, to 18,118.67. The S&P 500 lost 14.60 points, or 0.67 percent, to 2,150.09. The Nasdaq Composite Index was down 41.15 points, or 0.78 percent, to 5,264.59.

In Asia, Chinese stocks tumbled on Monday, with the Shanghai stock index sinking below the key psychological level of 3,000 points. The benchmark Shanghai Composite Index dropped 1.76 percent to 2,980.43 points.

Japanese shares suffered big losses Monday on the stronger yen, with the 225-issue Nikkei Stock Average going down 1.25 percent.

European equities also traded sharply lower Monday amid global uncertainty, with German benchmark DAX index at Frankfurt Stock Exchange dipping about 2 percent.

Meanwhile, oil prices were in focus, which traded over 3 percent higher around midday Monday as the world's largest producers gathered in Algeria to discuss ways to support the market.

On the economic front, U.S. sales of new single-family houses in August were at a seasonally adjusted annual rate of 609,000, beating market consensus, reported the Commerce Department Monday.

This is 7.6 percent below the revised July rate of 659,000, but is 20.6 percent above the August 2015 estimate of 505,000.

On Friday, U.S. stocks ended lower as investors were looking for excuses to lock in gains after a three-day rebound. Enditem