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Wall Street on edge after oil rout, tech in focus

U.S. stock index futures pointed to a flat open on Tuesday following a sharp 5 percent drop in oil prices seen overnight, as investors gear up for employment data later due later in the week.

Oil prices edged higher in London trading on Tuesday following a steep fall in the previous session, as high global production and a weakening economic outlook, especially in Asia, prompted analysts to warn of further falls.

Read MoreAll eyes on Brent crude and Apple after sluggish session

Energy stocks fell 2 percent Monday, following a more than 3.5 percent drop in West Texas Intermediate crude futures and 4.5 percent decline in Brent futures, which fell below $50 per barrel.

Oil output by the Organization of the Petroleum Exporting Countries (OPEC) reached the highest monthly level in recent history in July, and production could rise further if Iran achieves a plan to raise output by 500,000 barrels per day (bpd) as soon as sanctions are lifted.

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

Prices rose on Tuesday, with Brent 53 cents higher at $50.06 a barrel by 10 a.m. London time and U.S. crude above $46 a barrel.

Meanwhile, Apple weighed on sentiment after it closed over 2 percent lower, below its 200-day moving average of $120.86. Apple is now down about 12 percent from its April high.

Twitter shares continued their slide on Monday, falling to their lowest-ever closing price amid lingering concerns about the social media platform's growth prospects.

The stock had never closed below $30 per share, but it ended the day down more than 5.5 percent at $29.27. It bottomed below $29 in intraday trading Monday, down more than 6 percent.

On the data front, June factory orders figures are due at 10 a.m. ET. On Wednesday, markets will be watching for the ADP employment report, which comes ahead of the labor report on Friday.

Major earnings on Monday include Archer Daniels Midland, Coach, Norwegian Cruise Line, Regeneron, Sprint, Bloomin Brands, Time Inc., Beazer Homes, Kellogg, Cedar Fair and Och-Ziff Capital Management before market open.

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After the market close Activision Blizzard,Cerner, LendingClub, PioneerNatural Resources, Dreamworks, Etsy, First Solar and Newfield Exploration are due after the bell.

In Europe, equities traded mixed as slipping commodity prices and energy stocks dented sentiment.

In its second day of trading after reopening, the Greek stock market opened down over 4 percent, but pared losses to trade roughly 1.8 percent lower by mid-morning.