Stock futures were slightly lower on Monday ahead of the Federal Reserve's two-day meeting this week.
S&P 500 futures were down 0.25%, Dow Jones Industrial Average futures fell 0.18%, and Nasdaq futures slid 0.25%.
The Fedwill convene on Tuesday with an announcement and press conference set for Wednesday afternoon. The majority of economists don't expect the Fed to increase rates at this meeting after making initial liftoff in December. Consensus is for a June hike.
Morgan Stanley analysts disagreed, however, saying they believe that the Fed won't make a move until December. The bank expects Treasury 10-year yields to fall to 1.45% by the end of September, nearing a record low reached in 2012.
It's a busy week of monetary policy elsewhere. The Bank of Japan will meet on Tuesday and the Bank of England will meet on Thursday. The European Central Bank opted to cut rates further and expand its bond-buying program last week.
Crude oil prices were sharply lower after Iranian Oil Minister Bijan Zanganeh said the country wouldn't participate in negotiations with the Organization of Petroleum Exporting Countries next week. Hopes had been high that OPEC members and non-member Russia could agree upon a production freeze in the face of tumbling oil prices, but are unlikely to do so unless all countries are on board. West Texas Intermediate crude oil dropped 2.2% to $37.69 a barrel.
Starwood Hotels & Resorts (HOT) surged 8% in premarket trading after receiving an unsolicited buyout offer from a consortium of companies. The bid of $76 a share marks a 7.9% premium to Friday's closing price. The hotel chain's board is currently in support of a merger with Marriott(MAR) - Get Report .
BlackstoneGroup(BX) - Get Report shares were on watch after the company reportedly agreed to sell Strategic Hotels & Resorts Inc. to a Chinese firm for $6.5 billion. Blackstone only completed its acquisition of Strategic Hotels in December.
Fresh Market (TFM) rocketed 22% higher after Apollo Global Management(APO) - Get Report agreed to purchase the grocery retailer for $1.36 billion. The offer of $28.50 a share represents a 24% premium to Friday's close. The company was previously of takeover interest to Kroger(KR) - Get Report .
Tesla(TSLA) - Get Report added more than 1% after Robert Baird analysts upgraded the stock to overweight, arguing that production appeared to be growing. "Although we were concerned about the rate of Model X deliveries, recent data points show production is accelerating, which should drive deliveries and margin expansion," analysts wrote in a note.