NEW YORK (TheStreet) -- Stock futures fell broadly on Monday as Asian shares finished their trading day with massive losses and European stocks tumbled in early action.

S&P 500
futures were dropping by 2.3% and Nasdaq futures trading lower by 3.7%. Futures for the Dow Jones Industrial Average fell 2.5%.

Investors were bracing for big declines when the U.S. market opens, following a decline of 8.5% on China's benchmark Shanghai Composite as investors fretted over the health of the world's second-largest economy. Beijing referred to the drop as "Black Monday." 

The losses in Chinese stocks on Monday -- the biggest percentage decline since February 2007 -- erased their gains for the year. 

In other action in Asia, Hong Kong's Hang Seng Index sank 5.8%, while Japan's Nikkei 225 Index closed down 4.6%.

European stocks also were tumbling. Stocks in London fell 2.9%, markets in Frankfurt were down almost 3% while equities in Paris tumbled 2.7%.

Oil fell 3.5% on Monday to a six-and-a half-year low. West Texas Intermediate crude oil declined 4% to $38.86 a barrel. Prices had fallen below $40 a barrel for the first time since 2009 on Friday.

Stocks on Friday ended a brutal week as major losses piled up in the final hour of trading. Benchmark indexes closed their worst week in nearly four years as the continued slowdown in China spooked equity and commodity traders.

The S&P 500 fell 3.2% on Friday and has declined 7.5% since its May high, near the 10% decline which would constitute a correction.

Shares of Apple (AAPL) suffered a massive decline on Friday, falling 5.7%. The stock entered bear market territory after plummeting 20% from its Feb. 23 record close. In premarket trading on Monday, Apple was down 4.7%.