Stocks Set For Further Losses As Fed Looms - U.S. Commentary

(RTTNews) - Stocks look poised for a further decline at the start of Monday's session, extending the sell off that occurred last week. Worries about interest rates continue to drive the conversation on Wall Street.

Concerns about the upcoming Federal Reserve interest rate decision prompted a sharp slide on Friday, sending the Dow and the S&P 500 to two-month closing lows. The Nasdaq reached its lowest closing level in more than a month.

Friday's drop saw the Dow fall nearly 400 points, with the Nasdaq and S&P 500 each down 2.5 percent.

The pending Fed decision will continue to motivate trading on Monday. Futures are indicating a further slide at the open.

News flow is expected to be light on Monday, a fact that keeps interest rate speculation in the spotlight. There was one major M&A announcement, with Agrium Inc. (AGU.TO, AGU) and Potash Corporation of Saskatchewan Inc. (POT.TO, POT) announcing that they have agreed to combine in a merger of equals.

Asian stocks took a pounding on Monday, with U.S. interest rate concerns taking a toll there as well. The region was also affected by a sell-off in bond and oil markets and renewed concerns about North Korea's nuclear test spooked investors.

China's Shanghai Composite index dropped 56.88 points or 1.85 percent to 3,021.98. The Nikkei average tumbled 292.84 points or 1.73 percent to 16,672.92.

European markets are showing notable losses as well. Germany and France are each down about 1.8 percent. The U.K. is lower by 1.6 percent.