Wall Street's overnight sell-off is expected to weigh on the Australian share market this morning.
Australian market today
Adding to that picture, the overnight drop in iron ore and Brent crude prices may impact the performance of local mining and energy stocks.
The Australian dollar also weakened against the greenback, and is buying just above 78 US cents.
"The US dollar has been supported following better prospects for tax reform and continued speculation on the next Fed chair being more hawkish," said NAB economist Tapas Strickland.
There are no major domestic economic releases out today.
What happened on Wall Street?
The US stock market began its Monday with record-highs, but it did not take long for investors to sell-off their stocks.
The Nasdaq was the index which sustained the steepest losses (-0.6pc), weighed down by tech giants Amazon, Facebook, and Google.
The S&P 500 also fell by a modest 0.4 per cent, with toymaker Hasbro being one of its worst-performing stocks.
Hasbro plunged by 8.6 per cent after it warned of weaker holiday season sales due to its largest customer Toys 'R' Us going bankrupt.
The Dow Jones snapped its six-day winning streak (-0.25 per cent) after General Electric shares posted their biggest one-day drop since in six years — since August 2011.
General Electric's stocks fell by 6.3 per cent as its earnings, particularly from its oil and gas business, fell short of analysts' expectations.
Nevertheless, nearly three-quarters of the S&P 500 companies which have reported earnings so far have exceeded expectations.
The indexes are close to their all-time highs as investors remain optimistic that President Donald Trump's plans to cut corporate taxes will inch forward — particularly after the US Senate approved a $US4 trillion resolution last Thursday.
President Trump also said he was "very, very close" to announcing the next Federal Reserve.
At this stage, the market is betting on Fed governor Jerome Powell, who is expected to be more hawkish than the incumbent chair Janet Yellen.
