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Futures Sharply Lower Amid Growth Fears

Futures tumbled sharply Tuesday following the Labor Day weekend amid fears over global growth.

European shares tumbled, led by banks as rising debt yields continued to spook investors.

Italy is at the center of the euro zone attention, with doubts on whether the government can deliver a promised austerity package and trade unions threatening strikes as parliament debates the austerity measures.

Meanwhile, the Swiss National Bank decided to set a minimum exchange rate of 1.20 francs to one euro, in an attempt to curb the appreciation of the franc, which is hurting the nation's exports. The euro and the dollar soared against the Swiss francon the decision.

Among U.S. banks, financials that were in talks with prosecutors over settling claims of "robosigning" have been offered a deal, according to the Financial Times.

The FT said the proposed settlement language also might release the financial institutions, which include Bank of America , JPMorgan Chase , Wells Fargo and Citigroup , from legal liability for wrongful securitization practices.

Nomura cut its price targets on a number of banks including BofA, Citigroup, JPMorgan and Goldman Sachs. In addition, Credit Suisse cut its estimates for Goldman Sachs and Morgan Stanley.

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Among techs, Dell said it will partner with Baidu to develop tablet computers and mobile handsets, in an aim to target the Chinese market dominated by Apple's iPad. Meanwhile, Canaccord Genuity raised its price target on Apple to $545 from $515.

Meanwhile, Dendreon said it closed its partnershipwith GlaxoSmithKline on Dendreon's prostate cancer vaccine.

On the political front, investors continue to anticipate a Thursday speech from President Obama, who will unveil a package to boost employment to Congress.

The sluggish US economy is hurting Obama's chances of being re-elected in presidential elections next year.

On the economic front, ISM services data for August will be released at 10 am New York time, with analysts surveyed by Briefing.com seeing the index at 51 from July's 52.7.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

Coming Up This Week:

TUESDAY: ISM non-mfg index, Fed's Kocherlakota speaks; Earnings from PepBoys
WEDNESDAY: Weekly mortgage applications, Beige Book; Earnings from Hovnanian
THURSDAY: BoE announcement, ECB announcement, international trade, jobless claims, quarterly services survey, oil inventories, Bernanke speaks, consumer cerdit, TI mid-quarter update, OECD's global economic outlook, Obama talks jobs/economy; Earnings from Smithfield Foods
FRIDAY: McDonald's August Sales, wholesale trade, G7 finance ministers meet; Earnings from Kroger, Lululemon Athletica

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