The Weekend Is Over, And Markets Are Lower

S&P 500 futures are down 4 points or around 0.2%.

Selling may be more pronounced in the Asian markets as they catch up with last Friday's massive sell-off.

We saw the Dow fall 318 points and the S&P 500 tumble 38 points to end the week, both moves reflecting losses of 2%. Year-to-date, the U.S. market is down by 3.1%.

Much of last week's volatility seemed to originate in the emerging markets where currencies tumbled around the world. The Turkish lira, Argentine peso, South African rand, and Russian ruble were among the currencies that got brutalized.

Selling began during Thursday's Asian trading session when we learned China's Flash manufacturing PMI unexpectedly signaled contraction.

"We expect more soft data prints ahead, as the impact of slowing credit growth seeps through to the real economy," said Societe Generale's Wei Yao.

More broadly speaking, there is concern that normalizing monetary policy in the U.S. means higher interest rates and a stronger dollar, which could make debt financing costs increasingly expensive for the emerging markets.