The sell-off followed a marginally weaker-than-expected official employment report for March, which showed 192,000 jobs were created during the month.
"Friday's selloff took many by surprise, especially since the initial reaction in stocks seemed to be positive with the S&P 500 breaking new intra-day records shortly after the opening bell. The selloff started with the U.S. tech sector but the reality is that anything from high-growth to high-beta to high-P/E stocks were all targeted by sellers," said Deutsche Bank's Gael Gunubu in a research note on Monday.
Read MoreStocks may be challenged by momentum drop
Monday will be a quiet day for both economic data and earnings. A speech by St Louis Federal Reserve President James Bullard on the economy and monetary policy may garner some market attention, although he is not a voting member of the Federal Open Market Committee (FOMC) this year or next.
Things will get more exciting later in the week, when the Fed publishes minutes from its March 18-19 meeting. Plus, JPMorgan and Wells Fargo will be the first of the major U.S. banks to report first-quarter earnings on Friday.
Evan Lucas, a market strategist at IG, forecast the start of earnings season would provide direction to markets.
"There is a growing feeling that last-quarter earnings are not going to measure up to valuations," Lucas said in a morning note.
"Considering the macro data out over the January to March period, and the fact that the market once more hit record all-time highs last week, will earnings back the prices? Is earnings season going to be the reason for a pullback?"