Looking to the U.S. Federal Reserve, investors are likely to be digesting the latest comments from the central bank's chair, Janet Yellen, who delivered remarks Sunday.
In spite of subdued inflation, Yellen said in Washington that the U.S. economy remains robust and the strength of the labor markets makes the case for gradual increases in interest rates, Reuters reported.
Yellen's remarks hinted that the central bank will likely continuing raising interest rates to keep up with a strengthening economy. Most economists predict a final 2017 rate hike in December.
Meanwhile, Boston Fed President Eric Rosengren said he saw the U.S. central bank raising interest rates three to four times during the course of 2018, on the assumption that the unemployment rate continues to decline and inflation picks up, the news wires agency added.
Yields continued to tick upward Monday afternoon after Bloomberg reported that President Donald Trump was impressed by economist John Taylor, who is being considered for the central bank's top job.
In commodities, crude futures rose as concerns surrounding potential new sanctions on Iran by the U.S., as well as conflict taking place in Iraq, boosted prices.
In other news, investors are likely to be on edge Monday as they await any news from the U.S. administration. Senior U.S. administration officials said over the weekend that the States remained committed to being part of the Iran nuclear accord for the time being, in spite of President Donald Trump's warnings that he would withdraw.
President Donald Trump and Senate Majority Leader Mitch McConnell reiterated Monday that they want to see a tax bill passed by the end of the year.
"I really believe that we have a very good chance of getting the taxes done ... hopefully fairly long before the end of the year," the president said in a hastily scheduled, roughly 40-minute press availability following a lunch with the Kentucky Republican.
—Reuters contributed to this report.