Investing.com - U.S. stock futures pointed to a lower open on Monday, as sentiment soured after China stocks suffered their biggest one-day drop since 2007.
During early morning hours in New York, the blue-chip Dow futures lost 101 points, or 0.58%, the S&P 500 futures declined 11 points, or 0.53%, while the tech-heavy Nasdaq 100 futures slumped 31 points, or 0.68%.
The Shanghai Composite tumbled more than 8% on Monday, the biggest one-day drop since February 2007, on weak industrial profits and amid reports that government buying of stocks and securities has slowed.
Equity markets in China plunged sharply earlier this month, forcing policymakers to intervene and provide measures to boost liquidity and calm investors.
The U.S. is to release data on durable goods orders at 8:30AM ET. The report is expected to show that orders for durable goods rose 3.0% in June, while core orders inched up 0.5%.
Investors awaited the outcome of the Federal Reserve's two-day monetary policy meeting due to begin on Tuesday to see if policymakers will give any indication on the timing of a rate lift-off.
In deal news, Israeli drug-maker Teva Pharmaceuticals (ARCA:TEVA) agreed to acquire the generic-drug division of Allergan (NYSE:AGN) in a cash-plus-stock deal valued at $40.5 billion, it announced on Monday.
Allergan will receive $33.75 billion in cash and shares in Teva valued at $6.75 billion, giving it a 10% stake in the enlarged company, according to a statement from the Israeli company.
The Israeli drug-maker added that it has withdrawn its cash and stock proposal for rival Mylan (NASDAQ:MYL).
U.S.-listed shares of Teva surged 14.1% in pre-market trade, Allergan rose 10.3%, while Mylan shares tumbled 11.6%. Meanwhile, Perrigo (NYSE:PRGO) shares tacked on 3.4% after Mylan reaffirmed its interest in the company.
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