The S&P 500 and the Nasdaq posted their biggest monthly percentage gains since 2020 in July on stronger-than-expected second-quarter results and on hopes the Federal Reserve need not to be as aggressive with interest rate hikes as some had feared.

The upbeat mood faded on Monday as surveys showed factories across Asia and Europe struggled for momentum in July as flagging global demand and China's strict COVID-19 curbs slowed production.

The Institute of Supply Management's manufacturing Purchasing Managers Index is expected to show factory activity slowed in July to 52.0 from 53.0 in June, according to a Reuters poll.

Worries about a recession have weighed on stock markets this year, with the benchmark index down 13.3% as investors adjust their expectations on economic growth and corporate profits in the face of tightening financial conditions.

However, the earnings season has showed companies were far more resilient in the second quarter than estimated. Of the 279 S&P 500 companies that have reported results so far, 77.8% have topped profit estimates, as per Refinitiv data. The long-term average is 66.1%.

Activision Blizzard, Devon Energy and Simon Property Group are scheduled to report quarterly results later in the day.

At 07:10 a.m. ET, Dow e-minis were down 17 points, or 0.05%, S&P 500 e-minis were down 7.5 points, or 0.18%, and Nasdaq 100 e-minis were down 20.5 points, or 0.16%.

Boeing Co gained 5.2% in premarket trading after a Reuters report that the U.S. Federal Aviation Administration approved the planemaker's inspection and modification plan to resume deliveries of 787 Dreamliners.