U.S. stock index futures pared significant losses ahead of Tuesday’s open, but still pointed to a sharply negative open as the sell-off continues to weigh on sentiment worldwide. During Monday’s late hours, Dow futures were down 826 points, and S&P 500 futures were lower by 76.5 points as of 11:25 p.m. ET, indicating that the implied open for the Dow, based on futures, was a decline of 1,203.75.

Around 7:25 a.m. ET, Dow futures were indicating a roughly 540 point drop at the open, S&P 500 futures suggested a decline of 50 points and Nasdaq futures indicated a 99-point drop. The Cboe Volatility index — widely considered the best fear gauge on Wall Street — surged to 49.21. Global markets also fell sharply. The German Dax dropped 2.1 percent, while the French CAC 40 fell 2.4 percent. In Asia, the Japanese Nikkei 225 plunged 4.7 percent, while the Shanghai composite pulled back 3.4 percent. READ MORE