U.S. stock index futures were in positive territory Monday, with major averages looking to extend last week's rally following the government jobs report, lifted by positive economic news from Japan and after S&P revised its rating on U.S. sovereign credit outlook.
The ratings agency raised its sovereign credit outlook to "stable" from "negative," with a current rating of AA+, adding that the likelihood of a near-term downgrade is "less than one in three."
"Under our criteria, the credit strengths of the U.S. include its resilient economy, its monetary credibility, and the U.S. dollar's status as the world's key reserve currency," according to the S&P. "Similarly, in our view, the U.S.'s credit weaknesses, compared with higher rated sovereigns, include its fiscal performance, its debt burden, and the effectiveness of its fiscal policymaking."
Asian stocks rose on Monday with Japan's benchmark Nikkei closing up nearly 5 percent, rebounding from Friday's two-month closing low, thanks to a strong GDP revision and a weaker yen. The rally provided relief to investors, who have been on edge amid the recent volatility in Japanese stocks. Bank of Japan (BoJ) is scheduled to hold a two-day meeting later this week amid talk that it could announce some measures to curb volatility in the Japanese government bond (JGB) market.
Meanwhile, China reported weaker-than-expected trade data, slowing growth in fixed asset investments, and a big drop in producer prices. Australian and Chinese markets were closed for public holidays.
Looking ahead, notable data from the U.S. this week include retail sales, weekly jobless claims, producer price index and consumer sentiment.
McDonald's rose after the fast-food giant said its global same-store sales gained 2.6 percent in May, thanks to its expanded offerings for late-night breakfasts, modified menu options, and benefited from advertising value-priced meals.
Investors will be watching Apple as the tech giant holds its annual Worldwide Developers Conference, during which it is expected to unveil new operating systems and streaming radio service iRadio.
Elsewhere in the tech sector, Google could pay more than $1 for navigation and traffic application Waze, a person familiar with the negotiations told Reuters on Monday.
Among pharmaceuticals, Elan rejected a takeover bid from Royalty Pharma and will evaluate inquiries from other prospective buyers.
Meanwhile, AstraZeneca gained after the company said it will buy privately-held U.S. drugmaker Pearl Therapeutics in a deal worth up to $1.15 billion.
James Bullard, president of the St. Louis Federal Reserve, is expected to speak in Montreal about the global economic outlook on Monday morning.
—By CNBC's JeeYeon Park. Follow JeeYeon on Twitter: @JeeYeonParkCNBC