By Barbara Kollmeyer, MarketWatch

J.P. Morgan says it's too early to buy the recent pullback

U.S. stock futures fell sharply on Monday, indicating Wall Street is set to continue the heavy losses seen last week, as oil prices weakened and investors rushed to the perceived safety of gold.

Dow Jones Industrial Average futures slid 204 points, or 1.3%, to 15,926, while S&P 500 futures dropped 25.05 points, or 1.3%, to 1,850. Nasdaq-100 futures fell 70.25 points, or 1.7%, to 3,952.25.

The losses come on the heels of the biggest weekly drop in a month for U.S. equities (http://www.marketwatch.com/story/wall-street-gets-the-jitters-ahead-of-key-jobs-data-2016-02-05). The Nasdaq Composite fell 3.3% on Friday and logged a 5.4% weekly drop, its biggest in a month, as the so-called FANG stocks crumbled. Those stocks are Facebook Inc. (FB), Amazon.com Inc. (AMZN) Netflix Inc. (NFLX) and Google parent Alphabet Inc. (GOOGL) .

A mixed U.S. jobs report and weak oil prices played a role in last week's dives, which included a 1.6% weekly drop for the Dow industrials and a 3.1% slide for the S&P 500 . Oil prices lost more than 8% last week (http://www.marketwatch.com/story/crude-prices-steady-as-a-weak-dollar-lends-support-2016-02-05), and early Monday, WTI crude fell 78 cents, or 2.5%, to $30.11 a barrel.

Investors will be looking ahead to comments from Federal Reserve Chairwoman Janet Yellen on Wednesday and Thursday, when she testifies to Congress about the economy and monetary policy. Last week's jobs data prompted questions about the Fed's future interest-rate policy, as Friday's data showed slower jobs growth, but decent wage inflation.

There is no data scheduled for Monday, nor any Fed speeches. The week will end with retail sales data.

Read:Why consumers may keep economy from sinking (http://www.marketwatch.com/story/why-consumers-may-keep-economy-from-sinking-2016-02-07)

Stocks to watch

Hasbro Inc. (HAS) will release earnings ahead of the open on Monday, and Yelp Inc. (YELP) will report after the close.

Shares of LeapFrog Enterprises Inc. (LF) could be active after VTech Holdings Inc. (0303.HK) said it will buy the struggling educational toy maker for $72 million in cash (http://www.marketwatch.com/story/struggling-leapfrog-bought-by-vtech-for-72-million-2016-02-07).

Read:Disney, Coca-Cola headline consumer-heavy earnings week (http://www.marketwatch.com/story/disney-coca-cola-headline-consumer-heavy-earnings-week-2016-02-07)

Other markets

As U.S. stock futures fell, European markets followed, with the Stoxx Europe 600 index dropping 2.1%. The Nikkei 225 index (http://www.marketwatch.com/story/japan-australia-stocks-start-the-day-down-on-fed-uncertainty-2016-02-07) closed up 1%, boosted by upbeat earnings, while many other markets in Asia were closed for the Lunar New Year holiday. See: When are Chinese markets closed for holiday? (http://www.marketwatch.com/story/when-is-chinas-stock-market-closed-for-lunar-new-year-2016-02-05)

Data over the weekend showed China's foreign currency reserves fell by $99.469 billion in January, hitting the lowest level in more than three years (http://www.marketwatch.com/story/chinas-foreign-currency-reserves-drop-9947-bln-2016-02-06).

The dollar pulled back against the Japanese yen, while gold prices (http://www.marketwatch.com/story/gold-jumps-to-3-month-high-as-equities-continue-selloff-2016-02-08) rose $16.10, or 1.4%, to $1,173.70 an ounce.

(END) Dow Jones Newswires

February 08, 2016 06:28 ET (11:28 GMT)