Rupert Neate in New York Monday 24 August 2015 14.50 BST

Dow plummets 1,000 points minutes after opening and raises fears that a tech bubble has burst, with Facebook and Apple among the biggest early losers

• European markets face biggest losses since 2008 after China panic

A trader works on the floor of the New York Stock Exchange before the opening bell on Monday

US stock markets collapsed on Monday continuing a global stock market rout that has wiped hundreds of billions of dollars off shares across the world.

The Dow Jones Industrial Average dropped by 6.4%, the S&P 500 dropped 4%, and the Nasdaq lost 8.5% raising fears that a fresh tech bubble has burst. The drops followed already-heavy falls last week.

Technology stocks were the hardest hit with Facebook losing 14% at one point and Apple off 11%.

It follows dramatic falls in European and Asian stocks after Chinese shares had their worst day since 2007 – intensifying a stock market rout driven by fears about the world’s second-biggest economy.