Source: Sharecast
As of 1255 BST, Dow Jones futures were down 0.36%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.33% and 0.37% softer, respectively.
The Dow closed 172.85 points higher on Friday as major indices wrapped up the week with another round of record highs thanks to the Federal Reserve's decision to lower its benchmark overnight interest rate by 25 basis points, extending the strong momentum seen throughout the week
A looming risk of a US government shutdown weighed on market sentiment prior to the open, after the Senate failed to pass either Republican or Democratic proposals to temporarily extend federal funding. Senate Democratic Leader Chuck Schumer has since called on Donald Trump to engage with lawmakers in a bid to reach a compromise. The current funding deadline is 30 September, with no clear path yet to avoid a lapse in government operations.
Trade Nation's David Morrison said: "US stock index futures began the new week on the backfoot. All the majors pulled back from their best levels as investors look for additional clarity over the Fed's next moves. To that end, this week sees a host of Fed speakers, with chair Jerome Powell scheduled to talk tomorrow afternoon.
"The VIX continues to edge higher, making back a significant chunk of Wednesday’s sell-off. This was when the index plunged in the aftermath of the US Federal Reserve rate cut, along with its forecast for an additional 50 basis points-worth of interest rate reduction before year-end. Despite this, the VIX remains at relatively muted levels, suggesting that risk appetite remains intact, with investors reluctant to bid up protection despite elevated valuations in equities. However, with key inflation data due at the end of the week and frequent Fed commentary on tap, the index could see renewed activity should market conditions shift quickly."
On the macro front, the Chicago Federal Reserve's national activity index was scheduled for publication at 1300 BST.
No major corporate earnings were slated for release on Monday.
Reporting by Iain Gilbert at Sharecast.com
