The major U.S. index futures are currently pointing to a lower opening on Monday, with stocks likely to extend the downward move seen last Friday.
Renewed concerns about the global economic outlook may generate some selling pressure following the release of disappointing European economic data.
Survey data from IHS Markit showed the euro area private sector was close to stalling at the end of the third quarter. The flash composite output index unexpectedly fell to a 75-month low of 50.4 in September from 51.9 in August.
Germany's private sector contracted the most since late 2012 as a downturn in manufacturing deepened and service sector growth lost momentum.
Waning optimism about a potential U.S.-China trade deal may also weigh on the markets after the Chinese cut short a visit to the U.S. last week and President Donald Trump indicated he is not in a hurry to reach an agreement.
Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.
Reports on consumer confidence, new home sales, durable goods orders and personal income and spending are likely to attract attention in the coming days.
After seeing modest strength throughout the morning, stocks once again came under pressure in afternoon trading on Friday. The major averages pulled back well off their best levels of the day and firmly into negative territory.
The major averages ended the day off their lows of the session but stuck in the red. The Dow fell 159.72 points or 0.6 percent to 26,935.07, the Nasdaq slid 65.20 points or 0.8 percent to 8,117.67 and the S&P 500 dropped 14.72 points or 0.5 percent to 2,992.07.
With the downturn on the day, the major averages also moved lower for the week, the Dow slumped by 1 percent, while the Nasdaq and the S&P 500 fell by 0.7 percent and 0.5 percent, respectively.
Stocks showed a notable move to the downside on news Chinese trade negotiators canceled a scheduled visit to U.S. farm states next week.
The Chinese delegation was in Washington this week for deputy-level trade talks and had been scheduled to visit American farms next week as a gesture of goodwill.
However, the Montana Farm Bureau revealed that the visit has been canceled, as the delegation is heading back to China sooner than expected.
The news offset some of the recent optimism about a potential end to the U.S.-China trade war, with the deputy-level talks expected to help pave the way for more productive high-level talks next month.
Comments from President Donald Trump indicating he is not interested in a "partial deal" with China also dashed hopes of a possible "interim deal."
Trump also told reporters he doesn't think he needs to reach a trade deal with China before the 2020 elections, claiming the U.S. is not being affected by the trade war.
Uncertainty about the outlook for interest also weighed on stocks, with Boston Federal Reserve President Eric Rosengren arguing that it is not necessary and potentially risky for the central bank to continue lowering rates.
Rosengren noted in a speech at the Stern School of Business at New York University that the U.S. economy has held up well in the face of trade-related impediments.
"Additional accommodation is not needed for an economy where labor markets are already tight - and risks further inflating the prices of riskier assets, and encouraging households and firms to take on what may be too much leverage," Rosengren said.
Reflecting a divide at the Fed, Rosengren's speech came the same day St. Louis Fed President James Bullard released a statement explaining his preference for cutting interest rates by 50 basis points at the Fed meeting earlier this week.
Bullard cited signs that U.S. economic growth is expected to slow in the near horizon as well as continued indications of low inflation.
Semiconductor stocks showed a significant move to the downside on the day, dragging the Philadelphia Semiconductor Index down by 1.8 percent.
Xilinx (XLNX) posted a steep loss after the chipmaker said its CFO Lorenzo Flores is stepping down from his position to pursue another executive opportunity.
Considerable weakness also emerged among computer hardware stocks, as reflected by the 1.4 percent drop by the NYSE Arca Computer Hardware Index.
Retail, tobacco, and oil service stocks also came under pressure over the course of the session, while gold and pharmaceutical stocks showed strong moves to the upside.
Commodity, Currency Markets
Crude oil futures are slipping $0.07 to $58.02 a barrel after edging down $0.04 to $58.09 a barrel last Friday. Meanwhile, an ounce of gold is trading at $1,526, up $10.90 from the previous session's close of $1,515.10. On Friday, gold climbed $8.90.
On the currency front, the U.S. dollar is trading at 107.52 yen compared to the 107.56 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.0986 compared to last Friday's $1.1017.
Asia
Asian stocks ended mixed on Monday as Fed officials remained split on the need for further easing and U.S. President Donald Trump said he doesn't need a trade deal with China before the 2020 election, fueling pessimism about the prospect of an agreement between the world's two largest economies. The Japanese market was closed for the Autumnal Equinox holiday.
Chinese stocks fell sharply as trade talks with the U.S. showed signs of faltering. The benchmark Shanghai Composite index ended down 29.37 points, or 1 percent, at 2,977.08 after a Chinese trade delegation abruptly canceled a scheduled visit to U.S. farms and Trump said the U.S. was looking for a "complete deal" with China and not a partial one.
Hong Kong's Hang Seng Index shed 213.27 points, or 0.8 percent, to finish at 26,222.40 after yet another weekend of violent protests in the city.
Meanwhile, Australian stocks gained ground as last week's weak jobs data triggered speculation the Reserve Bank of Australia may cut rates at its next policy meeting on Oct 1. The benchmark S&P/ASX 200 Index rose 18.90 points, or 0.3 percent to 6,749.70, extending gains for a third straight session.
Wealth manager IOOF Holdings soared 12 percent to extend Friday's gains after a banking watchdog lost a landmark case alleging the company had breached pension laws.
Miners turned in a mixed performance, while energy stocks such as Oil Search and Woodside Petroleum rose over 1 percent. Specialty retailer Premier Investments jumped 5.8 percent after reporting a surge in annual profits.
Seoul stocks inched higher to extend gains for the 12th straight day as investors watched Middle East tensions and awaited a meeting between Trump South Korean President Moon Jae-in this week at the United Nations General Assembly. The benchmark Kospi closed slightly higher at 2,091.70.
Europe
European stocks have tumbled on Monday as trade worries persist and business activity readings from across the eurozone suggest growth has ground to a halt.
U.S. President Donald Trump has said he doesn't need a trade deal with China before the 2020 election, fueling pessimism about the prospect of an agreement between the world's two largest economies.
The euro area private sector moved close to stalling at the end of the third quarter, survey data from IHS Markit showed today. The flash composite output index unexpectedly fell to a 75-month low of 50.4 in September from 51.9 in August.
Germany's private sector contracted the most since late 2012 as a downturn in manufacturing deepened and service sector growth lost momentum.
While the U.K.'s FTSE 100 Index has fallen by 0.3 percent, the French CAC 40 Index and the German DAX Index are down by 1 percent and 1.1 percent, respectively.
Banks were losing ground on growth worries, with Deutsche Bank, BNP Paribas, Commerzbank and Lloyds Banking Group posting notable losses. Miners Anglo American, Antofagasta and Glencore have also moved to the downside.
Marks & Spencer Group shares have also slumped after the company announced Chief Financial Officer Humphrey Singer has decided to leave the business and a succession process is now underway.
DEUTZ AG has also plunged as the internal combustion engine manufacturer said the insolvency of a major supplier will have an adverse financial impact in the current financial year.
On the other hand, TUI, EasyJet and Ryanair Holdings have jumped on expectations that they will benefit from the Thomas Cook bankruptcy.
U.S. Economic Reports
New York Federal Reserve President John Williams is scheduled to speak at a U.S. Treasury Market Conference in New York at 9:50 am ET.
At 1 pm ET, St. Louis Fed President James Bullard is due to speak on the U.S. economy and monetary policy in Effingham, Illinois.
San Francisco Fed President Mary Daly is slated to speak about "Supporting Economic Opportunity in America's Urban and Rural Communities" at a Salem Community Leaders Luncheon in Salem, Oregon, at 2:30 pm ET.
Stocks In Focus
Shares of Exact Sciences (EXAS) are moving significantly higher in pre-market trading after the FDA approved the drug maker's colon cancer screening test, Cologuard, for eligible average-risk individuals ages 45 and older, expanding on its previous indication for ages 50 and older.
Pet suppliers retailer Chewy (CHWY) may also see initial strength after Nomura Instinet upgraded its rating on the company's stock to Buy from Neutral.
On the other hand, shares of NVR Inc. (NVR) are moving to the downside in pre-market trading even though S&P Dow Jones Indices announced the homebuilder will replace Jefferies Financial Group (JEF) in the S&P 500 before the start of trading on Thursday.
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