In opening trades, the Dow Jones Industrial Average dropped 108.80 points (1.28 per cent) to 8,388.51 and the Nasdaq fell 15.17 points (1.00 per cent) to 1,501.68.

The broad Standard & Poor's 500 index declined 11.72 points (1.34 per cent) to 861.57.

The overall market suffered heavy losses last week although some analysts said they saw signs Wall Street may have found a bottom from which a new rally could begin.

The market however found little to cheer about from the G20 summit statement in which the economic powers pledged to work together to steady markets and the economy.

'Investors viewed the result of the summit as mere hollow pledges by world leaders to stimulate growth,' said Chris Lafakis at Economy.com.

Significantly, Japan said its economy, the second largest in the world, contracted 0.1 per cent in the third quarter after shrinking 0.9 per cent in the second, joining what is expected to be a worldwide recession. -- AFP