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US markets set for choppy start after Easter break

U.S. stock index futures pared losses but continued to point to a lower open following remarks from New York Fed President William Dudley which maintained a data-dependent outlook.

The U.S. dollar briefly turned negative on the news.

Dudley is the first Fed official to speak since the disappointing March jobs report on Friday.

He noted that the first quarter will likely be weak, with downside risk to gross domestic product (GDP) from cheap oil and the stronger dollar.

The two-year bond yield fell as low as 0.48 percent following the headlines. The euro gained to $1.10.

With the main European stock markets still closed for a public holiday Monday, U.S. investors will be following on from Asia, where stocks outside Japan rose as investors believed the nonfarm payrolls report will delay interest rate hikes in the U.S.

Released at the end of last week, the United States added 126,000 jobs in March, the weakest since 2013 and below expectations of 245,000 in a Reuters poll.

Read MoreFed in focus after bad jobs report spooks markets

The unemployment rate held steady at 5.5 percent, in line with expectations, while wages increased slightly more than estimated at 0.3 percent. Equity futures were off about 1 percent on Friday.

Over the weekend, Greece's finance minister told reporters in Washington after a meeting with International Monetary Fund managing director Christine Lagarde that the country "intends to meet all obligations to all its creditors, ad infinitum." Athens is due to pay the IMF 450 million euros ($494 million) Thursday.

Traders work on the floor of the New York Stock Exchange.
Getty Images
Traders work on the floor of the New York Stock Exchange.

The euro continued to hold higher against the dollar, just below $1.10. Crude oil held above $50 a barrel, while brent gained to above $56 a a barrel.

Read MoreWhat a bad jobs Friday means for stocks

Companies due to announce results today include insurance company Arthur J Gallagher.

The only data release due Monday is the ISM Services index, due at 10am Eastern time.

Tesla delivered 10,030 vehicles during the first quarter, its highest quarterly total ever and a 55 percent increase over the first quarter of 2014.

Lorillard and Reynolds American are on watch today, on a shift in sentiment about whether a proposed merger between the tobacco giants will be allowed to proceed. The stocks had fallen in recent weeks on sentiment that it would be rejected, but reports emerged late last week that the FTC was leaning towards a proposed compromise that would allow it to go through.

CNBC's Peter Schacknow contributed to this report.