US stocks slumped at opening as Chinese data spooks investors

Disappointing Chinese trade data spooks investors spooked investor confidence, with major US equity indices tumbling during the opening hour of trading on Thursday. 

Data released during Asian session Thursday showed Chinese exports fell sharply, indicating slump in global demand and resurfacing worries of an economic slowdown in the world's second largest economy.

At the time of reporting, the Dow Jones Industrial Average fell over 130 points and dropped back to 18,000 mark, while the broader S&P 500 index declined 20 points to 2,120. Meanwhile, tech-heavy Nasdaq composite slipped back below 5,200 mark, losing around 60 points from Wednesday's closing level.

On economic data front, US weekly jobless claims remained flat from previous week's downwardly revised reading to a 43-year low level of 246K. The data clearly indicated the inherent strength in the US labor market and further reinforced market expectations of another rate hike by the US Federal Reserve, which usually dents investor appetite for riskier assets - like stocks. 

In other markets, the USD/JPY pair reversed sharply from over 2 1/2 month highs, while the overall US Dollar Index witnessed a retracement from multi-month highs and assisted gold to extend its tepid recovery trend for the second straight session amid prevalent risk-off mood.