Looking to data, the National Federation of Independent Business' (NFIB) small business optimism index rose to 105.3 in August from 105.2 in July.
The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTS) report found job openings little changed at 6.2 million on the last business day of July. Over the month, hires and separations were also little changed at 5.5 million and 5.3 million, respectively.
The Treasury Department auctioned $20 billion in 10-year notes at a high yield of 2.18 percent. The bid-to-cover ratio, an indicator of demand, was 2.28.
Indirect bidders, which include major central banks, were awarded 55.3 percent. Direct bidders, which includes domestic money managers, bought 6 percent.
'It's clear just based on the two auctions seen this week that yields got too low for investor taste at least for now," wrote Peter Boockvar, chief market analyst at Lindsey Group.
"The yield of 2.18% was one full basis point above the when issued. The bid to cover of 2.28 was well below the one year average of 2.42," he added.
After a turbulent weekend, Hurricane Irma was downgraded from a Category 5 hurricane to a tropical storm on Monday, however, the National Hurricane Center still warned that the storm was producing wind gusts which are close to hurricane force.
It has since been downgraded to a post-tropical cyclone. On Tuesday, Irma is currently moving its way across the South East of the U.S.
On the political front, North Korea's relationship with the West will remain a key point of focus for investors on Tuesday. The United Nations Security Council stepped up pressure on the country's textile exports and capped imports on crude oil.
On the commodities front, oil prices rose on Tuesday, even though concerns surrounding the economic impact of the likes of Hurricane Irma and Hurricane Harvey remain.