The S&P 500 and the Nasdaq posted record closing highs on Monday in a choppy session, boosted by shares of Nvidia after its 10-for-one stock split.

Nvidia was flat in premarket trading, while shares of Apple lost 0.7% after investors were unimpressed by the long-awaited AI strategy presented at its developer conference on Monday.

Markets are readying for Wednesday's release of the Consumer Price Index report for May, along with the conclusion of the Fed's two-day policy meeting. The central bank is not expected to change rates, but will release its updated economic projections and "dot plot."

The CPI numbers and the Fed's projections will be closely scrutinized by investors as recent reports have given conflicting signals about the economy's underlying health.

Markets are pricing in a slightly more than 50% chance that the Fed's first rate cut will occur in September, according to the CME's FedWatch tool.

"Lower commodity prices, coupled with potential adjustments in rental index calculations, could lead to more favorable inflation data in the coming months. This improvement would be a positive development for the markets and should influence the Federal Reserve's rate decisions," Jeremy Siegel, senior economist at WisdomTree, said in a note.

"Nevertheless, at this week’s meetings, I expect the dot plot to show between 1 and 2 cuts, with a few FOMC members choosing no cuts," Siegel said.

Producer Price Index data for May, import and export prices, as well as the first release of the University of Michigan's Consumer Sentiment Survey are also due later in the week.

On the day, a National Federation of Independent Business survey showed small business confidence and hiring plans increased to their highest levels of the year in May, but the upcoming U.S. presidential election drove the Uncertainty Index to a nearly four-year high.

At 5:54 a.m. ET, Dow e-minis were down 134 points, or 0.34%, S&P 500 e-minis were down 13.75 points, or 0.26%, and Nasdaq 100 e-minis were down 51.5 points, or 0.27%.

Cryptocurrency-linked stocks slipped as bitcoin fell 3.6%, with bitcoin miners Riot Platforms and Marathon Digital and crypto exchange Coinbase all falling over 3%.

Drugmaker Eli Lilly rose 3.0% after its Alzheimer's drug donanemab received unanimous backing from an FDA panel.

Rocket Labs USA gained 0.9% after the company signed terms to receive nearly $24 million in funding under the U.S. CHIPS Act to expand the production of semiconductors that power spacecraft.