The Nasdaq 100 rose by 1.2%. S&P 500 futures contracts added 1% on Monday, extending a bullish correction in stock markets as part of a strong short-term trend. Treasury bond yields climbed back to 3%.

The S&P 500 index was more than 5% above its June closing low following a strong rally on Friday amid renewed hopes that inflation and Fed rate hikes may be close to peaking.

Investors have grown increasingly concerned about the outlook. Gains in stock markets may prove to be short-lived as inflation pressures remain high, and a recession seems increasingly likely, according to strategists at Morgan Stanley and Goldman Sachs Group Inc

European stock market hit their monthly highs today. Apparently, they will continue to fall.

Oil prices soared after US President Joe Biden wrapped up a visit to the Middle East without a firm commitment from key producer Saudi Arabia to boost crude supplies.

Officials and traders expect the Nord Stream pipeline to reopen after routine maintenance. Moscow has already cut supplies amid the invasion of Ukraine.

"The possibility that Russia stops, or severely reduces, their gas exports to Europe should keep markets on edge in the near-term," Mizuho International Plc strategists Peter McCallum and Evelyne Gomez-Liechti wrote in a note to clients.

Key events to watch this week:

• Earnings reports from Bank of America, Goldman Sachs, Tesla
• US Treasury Secretary Janet Yellen visits South Korea. Tuesday
• Reserve Bank of Australia releases July minutes. Tuesday
• UK Chancellor Nadhim Zahawi and Bank of England Governor Andrew Bailey speak at event. Tuesday
• Bloomberg Crypto Summit in New York. Tuesday
• Bank of Japan, European Central Bank rate decisions. Thursday
• Nord Stream 1 pipeline scheduled to reopen following maintenance. Thursday