The Dow Jones dropped by more than 1,000 points (3.7 percent) on Monday, while the S&P 500 dropped 3.5 percent and the Nasdaq index lost as much as 4 percent.

Investors are increasingly worried about the economic impact of the сoronavirus outbreak, as more countries took measures to curb its spread over the weekend.

South Korea reported 161 new cases of the infection on Monday, while Italy and Iran also said they had seen a jump in the number of cases.

Travel stocks, along with technology stocks were trading lower on Monday. Drugmakers gained as big pharmaceuticals attempt to develop vaccines for the virus.

European markets were also feeling the effect with Britain's FTSE 100 and Germany's DAX all falling by more than 3.5 percent.

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