US futures dropped as investors braced for key inflation data due later this week, while oil prices fell after Russia cut off natural gas supply.
The S&P 500 was down 0.65%, the Nasdaq was down 0.80% and the DOW Jones was down 0.58%).
The consumer price index numbers for June will be watched by investors in the week ahead, with economists predicting another pick up in price growth despite the Federal Reserve raising rates quickly.
According to analysts at ING, headline inflation will show little sign of abating as prices of gasoline, food and airline fares continue to rise.
Consumer prices are expected to have increased by 8.8% in June.
Natural gas supply to parts of Europe was cut off by Russia as they carried out maintenance on theNord Stream 1 line. Concerns are mounting that the shutdown could be permanent, which would hurt Europe's economy.
With fears of a recession looming, oil prices fell, with the price of West Texas Intermediate crude dropping 2.5% to trade at $102.07 per barrel while the price ofBrent crude was down 2% to stand at $104.50. Natural-gas futures fell 4% to trade at 175 euro per megawatt-hour.
The safe-haven dollar gained on fears of a recession and Fed tightening.
The mounting energy concerns led to a decline in the stock market. The Paris' CAC fell 1.30%. The 600-share index dropped.
"The progress of repair work will be watched closely and any indication that delays are looming could see a fresh rise in European gas prices," said Streeter.
In Asia, the news of fresh COVID-19 cases mostly affected stock performance, with Hong Kong's Hang Seng losing 2.5% and the Shanghai Component dropping 1.27%). Concerns over supply-chain pressures and weakened demand are back in investors' minds after China re-imposed its strict lock down rules.
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