US stocks were sold off sharply on Monday as investors braced themselves for what is set to be a bleak earnings season, which kicked off with results from Alcoa, the aluminium producer, after the closing bell.

Shares in Alcoa, which dropped 10.7 per cent last week on its plans to cut 13,500 jobs and reduce production for the third time in as many months, shed a further 6.9 per cent to $10.06.