U.S. stock index futures were trading lower ahead of Monday's open, as investors paused for breath, after Wall Street posted sharp gains in the previous session. Investors also paid attention to rising interest rates.
Dow Jones industrial average futures fell 37 points, while S&P 500 and Nasdaq 100 futures declined 5.75 points and 14.75 points, respectively.
On Friday, U.S. stocks finished sharply higher, on the back of better-than-expected earnings results. The Dow Jones industrial average rose more than 200 points — hitting both intraday and closing records, while other indexes closed higher.
Wall Street also looked to the sovereign bonds market, as the benchmark 10-year yield broke above 2.7 percent.
"That, combined with short term profit taking following Friday's melt up in stocks, is weighing on futures," said Tom Essaye, founder of The Sevens Report.
Switching to Monday, in the corporate sphere, Lockheed Martin and Seagate Technology reported better-than-expected earnings and revenue.
On the data front, personal income rose 0.4 percent in December, more than the expected 0.3 percent increase.
In politics, the U.S. administration's security team is reportedly looking at options where the government could occupy part of the nation's mobile network, in order to protect itself from China, Axios reported.
Citing sensitive documents that it had acquired, Axios stated that two routes were up for discussion: building a single, super-fast mobile network that it could then rent access to national carriers, or wireless U.S.-based providers could establish their own 5G networks that would compete with each other.
Oil prices were under pressure Monday, while investors were paying close attention to the U.S. dollar, as it rose against a basket of currencies.
No speeches by members of the U.S. Federal Reserve are set to take place.
—CNBC's Saheli Roy Choudhury contributed to this report.