US index futures opened with a gap up early on Monday after hitting a yearly low and bouncing upwards on Friday. Dow Jones Industrial Average futures added 201 point or 0.6%. S&P 500 futures increased by 0.8%, while the Nasdaq 100 futures gained 0.8%. However, it is unlikely to indicate renewed demand for risky assets.

Earlier, US president Joe Biden stated he was considering cutting tariffs on several categories of Chinese goods. "I am considering it. We did not impose any of those tariffs. They were imposed by the last administration and they're under consideration," Biden said.

During the S&P 500's dive on Friday, major market players quickly took advantage of an equity sell-off by panicked investors and bought the dip. The index did not finish Friday's trading in negative territory, indicating that it could bottom out. The S&P 500 has lost 20% since the beginning of 2020, falling from its yearly high by 19%. The DJIA has decreased by 15.4%, while the NASDAQ has plunged by 30% from its yearly high, entering a bear market.

The S&P 500 finished last week in negative territory, posting its 7th straight week of losses in its worst performance since 2001. On Friday, the NASDAQ hit the lowest intraday level since November 2020.

Very high market volatility has left investors in disarray. The Fed is torn between saving the economy and fighting inflation, adding anxiety to market players.

This week, Zoom Video, Nvidia, Dollar General, Nordstrom, Macy's, and other companies are set to release their quarterly reports.

Premarket movers

Shares of VMWare jumped by more than 20% in premarket trading following reports by Bloomberg and Reuters that it is in advanced talks to be bought by chipmaker Broadcom.

Electronic Arts increased by 2.5% in premarket action after Puck News reported that the company was actively seeking a buyer or merger partner.

Shares of GameStop rose by 3.5% during the premarket following the launch of the company's digital wallet for cryptocurrencies and NFTs.

City has degraded HP Inc. to "neutral" from "buy", based on moderating demand for PCs in the near to mid-term. As a result, HP stock fell by 2.7%.

Pfizer and BioNTech announced that according to preliminary day, three doses of their COVID-19 vaccine offered strong protection for children under 5. Shares of BioNTech and Pfizer advanced by 1.8% and 0.2% respectively.

Boeing increased by 1% during the premarket after its Starliner spacecraft successfully docked with the International Space Station.

On the technical side, the S&P 500 held onto the yearly low near $3,818. However, new long positions could only be opened if the index stays above $3,900 during today's session. If the S&P 500 manages to stay above $3,932 as well, the initial resistance at $3,975 would be the target for bulls. A breakout above this level would push the index up towards $4,013 and $4,042. If pessimism in the market prevails amid renewed speculation about fighting high inflation, the instrument could fall towards $3,860. If the S&P 500 breaks below this level, it could then quickly slump towards the yearly low at $3,818 and $3,779 further below.