Source: Sharecast
By 0532 ET, Dow futures were pointing down 0.82%, the S&P 500 was falling 1.2% while the Nasdaq had slumped 1.6%.
The weaker opening follows a strong performance across all three markets over the past few weeks, with the S&P 500 in particular having now jumped 20% since hitting a yearly low on 9 April. On Friday, the index finished at its highest level since 26 February.
Hitting sentiment early on were comments from Scott Bessent who warned that America could once again lift trade tariffs on some countries if they fail to meet at the negotiating table "in good faith".
His warning came after Donald Trump announced on Friday that the administration would be sending letters to some 150 trading partner countries "telling people what they will be paying to do business in the United States".
Meanwhile, Moody's cut its rating on US government debt from the highest rating Aaa to Aa1 as a result of the country's eye-watering $36trn debt pile and growing interest costs. The downgrade means that none of the three major credit ratings agencies now rate US debt as the highest quality.
"Over more than a decade, US federal debt has risen sharply due to continuous fiscal deficits. During that time, federal spending has increased while tax cuts have reduced government revenues. As deficits and debt have grown, and interest rates have risen, interest payments on government debt have increased markedly," Moody's said.
No major economic data or blue chip earnings are due for release during Monday's session, though we will see a host of Federal Reserve policymakers making speeches.
"Markets have grown increasingly sceptical over the Fed’s willingness to slash rates this year, with the US-China trade deal and stronger jobs report moving us into a position where markets price two more cuts this year," said Joshua Mahony, chief market analyst at Scope Markets.
"With earnings season and trade fears largely cast aside for at least a month, traders will become increasingly focused on the pathway for rates and bond yields."