U.S. stock index futures were sharply lower Monday, as Greece's failure to form a coalition government increased fears that the nation would leave the euro zone.
U.S. stocks fell heavily last week, with the Dow posting its steepest weekly fall of 2012.
In Europe, Greece's socialist leader Evangelos Venizelos said efforts to form a coalition government have failed. And with new elections in June becoming increasingly likely, investors worry that the debt-ridden nation may eventually be forced out of the euro zone.
Concerns over Greece's exit pushed the 10-year Spanish bonds yields to the highest since last December.
Avon Products jumped after the cosmetics company said it would consider the latest proposal from Coty, raising hopes of a takeover. Last week, Avon rejected Coty's sweetened bid of $24.75 a share.
Meanwhile, Chesapeake Energy told investors that it was confident it would complete assets sales to plug a funding gap estimated at $10 billion this year. Last week, Chesapeake announced it had received a new $3 billion loan from Goldman Sachs and Jefferies.
Investors will continue to watch JPMorgan Chase, after the financial giant disclosed lats week that it suffered a trading loss of at least $2 billion since the end of March, due to a failed hedging strategy.
Yahoo will also be in the spotlight following the resignation of CEO Scott Thompson after discrepancies were found in his resume.
Among earnings, Groupon , the newly-listed discount voucher provider, is expected to report after the closing bell.
Facebook continues its IPO roadshow this week, with shares reportedly set to debut on the Nasdaq Friday under the ticker symbol "FB."
No major U.S. economic reports are set to be released on Monday.
European shares fell to 4-month lows in early trade on Monday, with the FTSEurofirst 300 index hitting its lowest point since early January, at 1,002.90 points.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
MONDAY: Earnings from Groupon
TUESDAY: CPI, retail sales, Empire state mfg survey, Treasury international capital, business inventories, housing market index, JPMorgan shareholders mtg, Morgan Stanley shareholders mtg, credit-card default rates reported; Earnings from Home Depot, Dick's Sporting Goods, TJX, Saks, JCPenney
WEDNESDAY: Weekly mortgage apps, housing starts, industrial production, oil inventories, FOMC minutes, AIG shareholders mtg, Southwest Air shareholders mtg; Earnings from Target, Abercrombie & Fitch, Deere, Staples, Limited Brands
THURSDAY: Jobless claims, Philadelphia Fed survey, e-commerce retail sales, leading indicators, Facebook pricing, Home Depot shareholders mtg, Intel shareholders mtg; Earnings from Wal-Mart, Dollar Tree, Ross Stores, Aeropostale, Gap, Marvell Tech
FRIDAY: Facebook begins trading, JCPenney shareholders mtg, G8 summit begins; Earnings from Ann
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