The US bourse is set to open higher as European leaders get ready to meet.

New York - US stocks opened sharply lower Friday, following European markets downward and retreating on a disappointing earnings report from Wall Street banking giant JPMorgan Chase.

Five minutes into trade, the Dow Jones Industrial Average fell 112.39 points (0.70 percent) to 16,057.83.

The broad-based S&P 500 tumbled 12.88 (0.70 percent) to 1,820.20, while the tech-rich Nasdaq Composite Index sank 43.71

(1.08 percent) to 4,010.39.

Dow member JPMorgan slumped 4.7 percent after first-quarter earnings of $5.3 billion fell 19 percent from a year ago and missed expectations due to weak trading and mortgage results.

The bank is often considered a bellwether for the sector, and most of the big banks report results next week.

The JPMorgan disappointment kept sentiment guarded after Thursday's rout, which saw the Nasdaq tumble 3.1 percent and the other two indices also notch big drops.

Equity markets in Britain, France and Germany all fell more than one percent Friday. - Sapa-AFP