U.S. stock futures were trading near the flatline on Monday night, following a brief pause in the market rally. Dow Jones Industrial Average futures edged up by just 17 points, or 0.05%. Similarly, futures tied to both the S&P 500 and Nasdaq-100 gained 0.1% each.

These minor gains come after the three major stock averages, including the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite, ended Monday lower. The Dow dipped by 0.4%, while the S&P 500 and Nasdaq Composite fell around 0.3% each. These slight pullbacks followed last week's strong gains, during which the indexes reached new all-time closing highs.

Despite concerns of market overbought territory, Warren Pies, co-founder of 3Fourteen Research, believes that investors still cannot be underweight on equities at this time. He stated that many people are underexposed to the market and will scramble to get exposed. Pies also mentioned a combination of a soft landing, supportive Federal Reserve policies, and under-invested strategists and institutions as factors that could keep the rally going.

Looking ahead, several economic data releases are slated for Tuesday. In the morning, March's consumer confidence data will be released, providing insights into consumer sentiment. Additionally, durable goods orders and the Richmond Fed's manufacturing survey will offer further indications about the health of the manufacturing sector.

The market's surge to new highs last week, following the March Federal Open Market Committee (FOMC) meeting, has raised concerns of a potential selloff. Sam Stovall, chief investment strategist at CFRA Research, noted that the market is becoming increasingly vulnerable to a decline or pullback in prices. However, Stovall observed that investors continue to invest in more cyclical sectors, including energy, industrials, and materials, expecting these sectors to benefit from lower interest rates.

Stovall highlighted that investors are unlikely to take a defensive position at this point, favoring sectors such as staples, healthcare, and utilities. Instead, investors are expected to gravitate towards materials, industrials, and energy.

Overall, U.S. stock futures remain relatively stable on Monday night, with minor gains signifying a temporary pause in the market rally. As investors await key economic data releases, it remains to be seen whether the momentum will continue or if a pullback is on the horizon for equities.