Wall Street was set to start the first trading day of the second half of this year with declines, as heightening risk of a tariff war between Washington and its trading partners continued to weigh on sentiments.
Share of trade-sensitive US companies were lower in pre-market trading, with Boeing and Caterpillar down about 1%, while chipmakers also slid along with a host of US-listed shares of Chinese companies.
Shanghai's blue chip index slid nearly 3%, days before the U.S. tariff on $34 billion worth of Chinese goods comes into effect on July 6, posing threats of a similar response from Beijing.
Trade war worries were also being compounded by a threat from the European Union to hit the United States with almost $300 billion in retaliatory tariffs.
Canada on Friday struck back at the Trump administration over US steel and aluminum tariffs, vowing to impose punitive measures on $12.63 billion worth of American goods.
Global stocks were also facing the impact of a threat to Chancellor Angela Merkel's German ruling coalition, while the Mexican peso whipsawed after Andres Manuel Lopez Obrador's election victory set the stage for the most left-wing government in the country's democratic history at a time of tense relations with the United States.
"There's not a lot of good news for markets to start the week," Scott Brown, chief economist at Raymond James said.
Brown said with a half-day for the markets on Tuesday and the July fourth holiday coming up, trading volumes could be thin, which might exaggerate any market move.
Also weighing on the sentiment was a drop in crude prices.
At 9:00 a.m. ET, Dow e-minis were down 168 points, or 0.69%. S&P 500 e-minis were down 16.5 points, or 0.61% and Nasdaq 100 e-minis were down 54.25 points, or 0.77% .
Twenty-five of the 30 stocks of the Dow Jones Industrial Average were trading in the red pre-market, with Nike, Caterpillar, Boeing, Visa and Intel trading at least 1% lower.
Shares of chipmakers Micron, AMD and Nvidia were down more than 1%. Chipmakers depend on China for a large portion of their revenue.
Among Chinese companies, Alibaba fell 2.2%, while JD.com fell 2.1%.
Among the bright spots was Tesla, which jumped 4.2% after the electric car-maker was said to have met its target of producing 5,000 Model 3 sedans per week.
Dell Technologies Inc jumped 11.1% after agreeing to buy the tracking stock of VMware, taking a step closer to become a public company again. VMware was up 9.1%.