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Monday's declines comes after the major stock indexes posted their second consecutive weekly earnings last week, boosted by progress on the US-China trade front and strong jobs data.
President Donald Trump said Thursday "we'll know about the next four weeks" whether a deal between the two countries can be reached. On Friday, the Labor Department reported that 196,000 jobs were created in March.
"Investors continued to ride," said Craig Johnson, chief market technician at Piper Jaffray, in a note to clients. He added that investor focus will shift to the release of a quarterly corporate earnings and earnings kicks off on Friday. J.P. Morgan Chase and Fargo Wells are set to report that day.
Wall Street expects this year to be a tough one. First-quarter S & P 500 earnings are expected to have fallen 4.2% on a year-over-year basis, according to FactSet. That would be the first earnings contraction for the S & P 500 since the second quarter of 2016.
"From our perspective, the market is going to be more expensive and more expensive than the current economic and geopolitical backdrop," said Piper Jaffray's Johnson.
On the data front, factory orders for February are scheduled for release at 10 am ET.
Snap shares rose more than 4% after RBC Capital Markets upgraded the social media company to outperform from sector perform, noting the "potential for a positive inflation point catalyzing" the stock.
-CNBC's Sam Meredith contributed to this report.
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