The S&P 500 index declined by the most since September yesterday, falling 0.7%
Yields on benchmark Treasury bonds touched the highest levels since early 2014 as traders gear up for a hectic week of data and policy announcements.
The US dollar strengthened against all its major rivals. The FOMC meeting begins today, the final policy meeting for Janet Yellen. Investors will be looking for confirmation of a March hike, the current probability priced in the market is 75%
In policy news, President Donald Trump will deliver his first State of the Union address to Congress on later this evening.
European stocks ended the session slightly lower as food and beverage shares retreated to a four-month low, offsetting a gain in basic-resources companies.
In economic news, the latest European GDP measure will be released today for Q4. Inflation releases tomorrow will be a key market focus for clues on ECB monetary policy.
In Asia overnight, stocks in Japan, Hong Kong and Australia fell after the S&P 500 Index declined from a record high.