Stocks appear poised to move to the downside in early trading on Tuesday, adding to the losses posted in the previous session. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 30 points.
Concerns about the outlook for interest rates may weigh on the markets ahead of the Federal Reserve's monetary policy announcement on Wednesday.
While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.
Traders may also be reluctant to pick up stocks ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.
Labor Day holidays overseas could lead to choppy trading, however, with many of the major markets in Asia and Europe closed on the day.
Shortly after the start of trading, the Institute for Supply Management is scheduled to release its report on activity in the manufacturing sector in the month of April.
The ISM's purchasing managers index is expected to dip to 58.3 in April from 59.3 in March, although a reading above 50 would still indicate growth in the manufacturing sector.
The Commerce Department is also due to release its report on construction spending in the month of March. Construction spending is expected to rise by 0.5 percent.
After failing to sustain an initial upward move, stocks moved mostly lower over the course of the trading session on Monday. The major averages pulled back into negative territory following the mixed performance seen last Friday.
Going into the close, the major averages saw further downside, ending the session firmly in the red. The Dow fell 148.04 points or 0.6 percent to 24,163.15, the Nasdaq slid 53.53 points or 0.8 percent to 7,066.27 and the S&P 500 slumped 21.86 points or 0.8 percent to 2,648.05.
In overseas trading, many of the major Asian markets were closed on the day, although stocks in Australia and Japan moved higher in light trading. Australia's S&P/ASX 200 Index climbed by 0.5 percent, while Japan's Nikkei 225 Index edged up by 0.2 percent.
U.K. stocks have also moved to the upside, while most of the other major European markets are closed. The U.K.'s FTSE 100 Index is rising by 0.5 percent.
In commodities trading, crude oil futures are sliding $0.65 to $67.92 a barrel after rising $0.47 to $68.57 a barrel on Monday. Meanwhile, after falling $4.20 to $1,319.20 an ounce in the previous session, gold futures are slumping $8.80 to $1,310.40 an ounce.
On the currency front, the U.S. dollar is trading at 109.61 yen compared to the 109.34 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.2034 compared to yesterday's $1.2078.
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