The U.S. stock futures opened lower on Sunday night, indicating a continued struggle for the equity market after a tough week. S&P 500 futures took a slight dip of 0.1%, while Nasdaq 100 futures slid 0.2%. Meanwhile, futures tied to the Dow Jones Industrial Average fell by 22 points, or less than 0.1%.

Last week proved to be a challenging start for September, a traditionally slow month for equities. The S&P 500 recorded its worst week since March 2023 with a significant tumble of 4.3%. The Nasdaq Composite also experienced its worst weekly performance since 2022, plummeting by 5.8%. The Dow, comprised of 30 major stocks, dropped 2.9% as well.

These declines came after fears were sparked by the August jobs report, which revealed sluggish growth in the labor market. Nonfarm payrolls only increased by 142,000, falling short of the anticipated 161,000 gain predicted by economists. However, the unemployment rate did tick lower to 4.2%, meeting expectations.

As investors brace for further market developments, two key inflation reports are eagerly awaited this week. The consumer and producer price reports for August are scheduled for release on Wednesday and Thursday morning, respectively. These reports hold significant implications for the Federal Reserve's upcoming decision at its next open market committee meeting.

Currently, the market has priced in a 71% chance of the Fed implementing a 25-basis-point rate cut and only a 29% chance of a more aggressive 50-basis-point cut, according to the CME Group FedWatch Tool. Vincent Deluard, StoneX's director of global macro strategy, believes that even a weaker-than-expected consumer or producer price report may not be sufficient to spur a larger rate cut. Deluard suggests Federal Reserve Chairman Jerome Powell may be hesitant to take such a risk.

In terms of earnings, this upcoming week will see a limited number of company reports. Only three companies in the S&P 500 - Oracle, Petco, and Dave & Buster's - are scheduled to release their earnings after the closing bell on Monday and Tuesday. Additionally, Kroger and Adobe will report before and after Thursday's trading session, respectively.

With Monday's trading just ahead, here's how the major averages stand for the month: The S&P 500 is down 4.25%, the Nasdaq Composite has declined by 2.93%, the Dow Jones Industrial Average is down 5.77%, and the Russell 2000 has dropped 5.69%.

Overall, stock futures started the week on a downward trajectory, underscoring the persistent challenges facing the market. As investors closely monitor inflation reports and company earnings, the next moves by the Federal Reserve will carry significant weight in shaping market sentiment and direction.