US STOCKS-Set to open sharply lower, Dow headed below 16,000

* Chinese market falls 8 percent

* Oil hits new 6-1/2 year low

* Nasdaq futures briefly halted

* Futures down: S&P 3.27 pct, Nasdaq 4.95 pct, Dow 3.69 pct (Adds details, updates prices)

By Tanya Agrawal

Aug 24 (Reuters) - Wall Street looked set for another rout on Monday following a more-than 8 percent drop in Chinese shares and a selloff in oil and other commodities, with the Dow set to open below 16,000 for the first time since February 2014.

Stock futures were in a free-fall, with Nasdaq futures halted briefly after hitting a circuit breaker, a step taken by exchanges to reduce volatility and give investors time to assess information.

The S&P 500 and Nasdaq composite indexes were poised to slip into correction territory, or 10 percent off their 52-week highs. The Dow Jones industrial average and the Nasdaq 100 slid into a correction zone on Friday.

S&P 500 e-minis were down 64.5 points, or 3.27 percent, with 1,107,188 contracts traded at 8:43 a.m. ET. Nasdaq 100 e-minis were down 208 points, or 4.95 percent, on volume of 135,401 contracts. Dow e-minis were down 608 points, or 3.69 percent, with 136,791 contracts changing hands.

Apple (NasdaqGS: AAPL - news) shares slid 5.8 percent to $99.61 in premarket trading and were set to open at their lowest this year.

The lack of new measures from Beijing to support Chinese stocks following an 11 percent drop last week sparked a plunge in global equities and a selloff in oil and commodities.

Oil fell more than 4 percent to a 6-1/2-year low, while London copper and aluminum futures hit their lowest since 2009.

Oil majors Exxon and Chevron (Swiss: CVX.SW - news) fell about 4 percent in premarket trading. U.S (Other OTC: UBGXF - news) . oil and gas stocks have already lost about $310 billion of market value this year.

"Until we have some sign that China and the emerging markets aren't being sucked into some vortex from which they can't recover ... it is unlikely this selloff will stem," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The dollar index fell 1.1 percent to $93.92 as the probability of a September rate hike receded.

Wall Street's selloff last week showed investors are becoming increasingly nervous about paying high prices for stocks at a time of minimal earnings growth, tumbling energy prices, and an expected rate hike by the U.S. Federal Reserve.

European stocks were down 4.8 percent, wiping out more than 400 billion euros ($460 billion) of market value. Asian stocks slumped to 3-year lows as the 3-month-long rout in Chinese equities threatened to get out of hand.

Netflix (Xetra: 552484 - news) fell 12 percent to $91.50 in premarket trading.

Alibaba fell 8.9 percent to $63.99, well below its IPO price of $68, making it the second high-profile tech company to fall below its IPO price in the past week after Twitter (Swiss: TWTR.SW - news) on Thursday. ($1 = 0.8686 euros) (Reporting by Tanya Agrawal; Editing by Ted Kerr)