U.S. stocks fall amid budget worries; Dow Jones down 0.27%

Investing.com - U.S. stocks opened lower on Monday, as investors remained cautious after U.S. lawmakers failed on Friday to avert a first series of automatic spending cuts.

During early U.S. trade, the Dow Jones Industrial Average fell 0.27%, the S&P 500 index slipped 0.12%, while the Nasdaq Composite index edged 0.19% lower.

Investor confidence weakened after USD85 billion of automatic spending cuts, known as the "sequestration", began on Friday as lawmakers could not agree on spending cuts and tax reform to tackle the country's budget deficit.

U.S President Barack Obama said on Sunday he could compromise with Republican lawmakers by cutting welfare entitlements such as Medicare.

In the tech sector, Apple tumbled 1.10% after a federal judge slashed a USD1.05 billion jury award by more than 40% and set a new trial to determine damages in the company's ongoing legal battle against rival group Samsung Electronics.

Separately, Sony announced that it aims to win third place in smartphone markets around the world behind Apple and Samsung Electronics, pitting it against Chinese companies Huawei Technology and ZTE which are looking to become the third big player in mobile devices.

United Technologies added to losses, plunging 1.30% after the Wall Street Journal reported that Pratt & Whitney, a subsidiary of United Technologies, uncovered a fraudulent scheme of testing engine parts by another unit of United Tech.

Elsewhere, ConocoPhillips, which has been looking to sell down its interest in Canada's oil sands, retreated 0.77% after saying that moves by Ottawa to limit foreign investment in that country's resources have made it more difficult for some buyers.

On the upside, Yahoo surged 2.46% after the Internet company said it plans to discontinue seven of its products, including its mobile BlackBerryapp.

In the financial sector, stocks were mixed. Shares in Bank of America added 0.18% and Citigroup jumped 1%, while Goldman Sachs inched down 0.01% and JP Morgan dropped 0.37%.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 edged up 0.16%, France’s CAC 40 rose 0.32%, Germany's DAX slipped 0.23%, while Britain's FTSE 100 slid 0.55%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.50%, while Japan’s Nikkei 225 Index advanced 0.4%.

Markets were also jittery after China announced more property market tightening measures on Friday, in a bid to contain housing costs.