As for the Fed, Trump did say in a TV interview that he would not seek to remove Powell from being chairman of the Fed before his term ends next year. Many legal experts and Powell said they did not think Trump has the power, but at least this removes some of the uncertainty surrounding the central bank for the moment.

The S&P 500 and the Nasdaq were lower on Monday after U.S. President Donald Trump rekindled worries about the fallout of a global trade war by introducing new tariffs, while focus remained on the Federal Reserve's monetary policy decision later this week.

Trump announced a 100% tariff on movies produced outside the U.S. but offered little clarity on how the levies would be implemented. Movie and television production companies that film overseas fell in premarket trading.