NEW YORK (TheStreet) -- Markets were set to step back from their recent record run on Monday after the S&P 500 nudged to a new high to close out last week.
S&P 500 futures fell 0.2%, Dow Jones Industrial Average futures slipped 0.12%, and Nasdaq futures slid 0.29%.
Crude oil prices surged above $60 a barrel on news of further fighting in the Middle East, including Iraqi city Ramadi being captured by ISIS and continued airstrikes in Yemen. Investors hope potentially restricted supply in oil-rich Middle Eastern countries will help to rebalance global supply and demand. West Texas Intermediate crude added 1% to $60.29 a barrel.
The Federal Reserve could hike interest rates sooner than expected with Chicago Fed President Charles Evans noting overnight in a speech that a June hike is a possibility. Evans, speaking in Stockholm, also said the Fed wouldn't likely reach its 2% inflation target until 2018. The majority of economists believe the Fed will hike no sooner than September.
Fed Chair Janet "Yellen and [New York Fed president William] Dudley gave words that suggested they fully expect volatility around the hiking idea which is another way of saying the Fed won't be swayed to postpone their intent simply because the markets are jumping about," said CRT Capital Group's Ian Lyngen.
Endo Pharmaceutical (ENDP) shares rose 1.2% after the company agreed to buy privately-held Par Pharmaceutical Holdings for $8.05 billion in cash and stock. The deal would create one of the five largest generic drug makers in the U.S.