AP/Dan Anderson
A surfer makes his way out into the water as a subtropical approaches.
Italy's political crisis deepens. Italian President Sergio Mattarella rejected euroskeptic economist and former banker Paolo Savona for finance minister, and he must now form a new government or face another election.
Peripheral yields surge. Italy's 2-year yield is up almost 150 basis points near 2.30% while its 10-year is higher by 42 bps at 3.08%. Elsewhere in Europe, Greece's 10-year is up 34 bps while Spain and Portugal's 10-year yields are higher by 10 bps and 13 bps respectively.
Stock markets around the world are under pressure. Italy's MIB (-2.13%) is getting hit hard in Europe after Hong Kong's Hang Seng (-1%) led the losses in Asia. The S&P 500 is set to open down 0.73% near 2,701.
The US 10-year yield is plunging. Safe-haven flows pushed the benchmark yield down as much as 13 basis points to 2.79%, a 7-week low. It's currently at 2.86%.
Investors with trillions at stake are 'gorging like pigs at the trough' - and the smallest misstep could make a painful crash even worse. A market drop, which may require investors to meet margin calls by selling stocks and reducing their overall levels of debt, could have a snowballing effect on the next bear market, according to Brad Lamensdorf, a portfolio manager at Ranger Alternative Management and an outspoken market bear.
China is producing more steel than the rest of the world combined. China produced a mammoth 76.7 million tonnes of steel in April, more than the 71.6 million tonnes produced by the rest of the wold, World Steel Association data showed.
Deutsche Bank plummets as Italy crisis rocks global banks. Shares of the bank are down nearly 5% ahead of Tuesday's opening bell, and closing in on a record low.
"Solo" bombs at the box office. "Solo: A Star Wars Story" was estimated to have earned $101 million at the box office through Memorial Day, well below the $130 million to $150 million that was projected, according to Exhibitor Relations.
Earnings reports trickle out. HP and Salesforce report after the markets close.
US economic flows. S&P home prices will be released at 9 .m. ET before consumer confidence and Dallas Fed manufacturing cross the wires at 9:30 a.m. ET and 10 a.m. ET respectively.