U.S. stock index futures were higher Monday after a last-minute bailout agreement was reached by Cyprus and its international creditors, averting the country's possible exit from the euro zone.
Cyprus and its international lenders reached a deal merely hours before a deadline to resolve the island nation's financial crisis and avert the country's exit from the euro zone. The 10 billion euro ($13 billion) deal involves the winding down of Cyprus' second largest lender, the Popular Bank of Cyprus, and imposes a levy on uninsured deposits over 100,000 euros ($130,000) in Cypriot banks.
"Equities are enjoying a relief rally this morning as the imminent threat from Cyprus appears to have been abated, but where the markets go from here remains to be seen," wrote Mike McCudden, head of derivatives at stockbroker Interactive Investor.
(Read More: Cyprus Relief: Why the Rally May Be Short Lived)
"Despite a deal being struck for Cyprus, it will set an unsettling precedent for future bailouts and investors will once again be concerned over the security of their bank deposits," wrote McCudden. "Furthermore, investors should question why the regulators allowed the Cypriot banking system to rise to this size, given the experiences in Iceland and Ireland."
Last week, major averages finished in the red for the week, with the Dow snapping a four-week win streak and the S&P 500 logging its second losing week this year.
(Read More: Where's the Long Awaited Market Correction?)
Elsewhere, shares of Dell jumped after the company confirmed it had received competing offers from Blackstone Group and billionaire investors Carl Icahn as the computer giant looks to go private. The offers come as the company agreed to a $24.4 billion deal to be taken private by private equity firm Silver Lake.
Apple traded higher after the tech giant , a startup company that makes mapping applications for smartphones.
Also among techs, BlackBerry extended sharp losses from last week after the smartphone maker's new BlackBerry Z10 launch failed to generate buzz. In addition, Goldman Sachs cut its rating on the company to "neutral" from "buy."
On Sunday, Reuters reported the International Monetary Fund is planning to cut its 2013 U.S. growth forecast from 2 percent to 1.7 percent, due to higher taxes and spending cuts, citing a draft of the IMF's next World Economic Outlook report seen by Italian news agency ANSA.
Federal Reserve Chief Ben Bernanke and the International Monetary Fund's Olivier Blanchard are expected to speak at the London School of Economics later this afternoon.
In addition, New York Federal President Bill Dudley is scheduled to speak at the Economic Club of New York at 12:30 pm ET.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
MONDAY: Chicago Fed nat'l activity index, Dallas Fed mfg suvey, Fed's Dudley speaks, Bernanke speaks, USDA food prices outlook
TUESDAY: Durable goods orders, S&P/Case Shiller home price index, new home sales, consumer confidence, Richmond Fed mfg index, 2-yr note auction; Earnings from Mattress Firm
WEDNESDAY: Mortgage applications, pending home sales, oil inventories, Fed's Evans speaks, Fed's Rosengren speaks, Fed's Pianalto speaks, Fed's Kocherlakota speaks, 5-yr note auction, farm prices; Earnings from Red Hat, Paychex
THURSDAY: GDP, jobless claims, corporate profits, Chicago PMI, natural gas inventories, 7-yr note auction, Fed balance sheet/money supply, Ebay analysts mtg, weekly rail numbers; Earnings from Accenture, Blackberry, Mosaic, Gamestop
FRIDAY: Good Friday -- US banks open/equity markets closed, personal income & outlays, consumer sentiment
More From CNBC.com: