U.S. stocks plunged more than 1,000 points on Monday afternoon over fears of the COVID-19 virus.

All three major U.S. indices posted major losses with the Dow Jones Industrial Average down more than 1,000 points at the closing bell. In Europe, the travel and luxury sectors drove down stocks in the UK and Germany.

With sharp increases in COVID-19 cases outside of China, the broad selloff in global stock markets appear to reflect investor concerns over the prospects of a pandemic and its potential impact on the global economy.

Over the weekend, the number of confirmed cases spiked in South Korea, Italy and Iran. While the largest outbreak outside of China occurred on the Diamond Princess cruise ship with 634 infected passengers and crew, the surge in cases in South Korea, Italy and Iran have increased concern of a full-blown pandemic.

Among nations, WHO data shows South Korea now has the largest number of cases, 346, of any nation outside China.

Because China is the "world's factory floor," economists are expressing concerns about disruptions to manufacturing supply chains due to the outbreaks. Automakers around the world are reporting shortage of Chinese-made parts.

Many factories in China remain closed after the end of the Lunar New Year, many international flights in and out of the country have been suspended and Wuhan is still under lockdown.