US open: Stocks attempt to claw back losses at the bell

US stocks opened higher on Monday, with the Dow Jones and S&P 500 attempting to claw back from their recent heavy losses.

As of 1540 GMT, the Dow Jones Industrial Average was up 0.72% at 25,593.25, while the S&P 500 was 0.45% firmer at 2,967.40 and the Nasdaq Composite came out the gate 0.32% stronger at 8,594.36.

The Dow Jones opened 183.89 points higher on Monday as indices attempted to recover some of the losses seen in what was the worst week on the Street since the Global Financial Crisis in 2008. The Dow, S&P 500 and Nasdaq Composite all entered correction territory last week, down more than 10% from the all-time highs notched earlier in February.

Last week's losses were fuelled by a sharp increase in cases of the Wuhan coronavirus outside of China and as of Sunday, over 85,000 cases of the virus had been confirmed across the globe, along with more than 2,900 related deaths. Australia, Thailand and the US reported their first coronavirus-related casualties over the weekend.

Also weighing on sentiment at the open was a survey on Chinese manufacturing activity. The Caixin Manufacturing Purchasing Managers' Index came in at 40.3 for February - far below expectations of a reading of 45.7 and its weakest level ever.

Fears related to the impact of the coronavirus on corporate profits and the global economy also pushed US Treasury yields to all-time lows, with the benchmark 10-year rate dropping below 1.04% for the first time ever.

However, many analysts now expect that the Federal Reserve will lower its Fed funds rate target by 25 basis points to 1.25%-1.5% at its scheduled March 17-18 meeting as a result of the coronavirus-related sharp correction in the stock market.

In terms of election news, Joe Biden easily won the South Carolina primary, setting him up for a potentially key Super Tuesday vote, while challenger Pete Buttigieg pulled out from the race for the Democratic Party nomination.

On the macro front, IHS Markit's US manufacturing purchasing managers' index rose to 50.7 in February, up from 51.9 in January and slightly below the 50.8 flash reading.

Elsewhere, factory sector activity in the States slipped last month as the Chinese coronavirus left its mark on businesses, wreaking havoc among electronics firms and triggering layoffs among makers of transportation equipment.

The Institute of Supply Management's manufacturing sector Purchasing Managers' Index retreated from the 50.9 level in January to 50.1 for February. Economists had pencilled-in a reading of 50.5.

While no major corporate earnings were scheduled for release on Monday, Gilead Sciences entered into a definitive agreement to acquire clinical-stage immuno-oncology company Forty Seven for approximately $4.9bn.