Stocks are headed for another drop at the open as global markets plunge

U.S. stock index futures pared significant losses ahead of Tuesday's open, but still pointed to a sharply negative open as the sell-off continues to weigh on sentiment worldwide.

During Monday's late hours, Dow futures were down 826 points, and S&P 500 futures were lower by 76.5 points as of 11:25 p.m. ET, indicating that the implied open for the Dow, based on futures, was a decline of 1,203.75.

Around 6 a.m. ET, Dow futures were indicating a roughly 520 point drop at the open, S&P 500 futures suggested a decline of 44 points and Nasdaq futures indicated an 82 point drop.

On Monday, the Dow Jones industrial average dropped 1,175.21 points to close down at 24,345.75 — having briefly declined more than 1,500 points during the session; with other major indexes closing sharply lower. The sell-off kicked into action on Friday, after the latest nonfarm payrolls report saw interest rates in the U.S. jump.

While there was no particular piece of news that pushed major U.S. indexes deep into the red on Monday, the recent moves in the bond market have added volatility and concern to the market.

Consequently, investors are paying close attention to not only the bond market, but how the U.S. Federal Reserve will react to this, as Jerome Powell takes on the position as chair of the U.S. central bank.

Also on Tuesday, data and earnings are set to keep investors' somewhat busy as the sell-off continues to simmer.

Looking to data, the U.S. international trade in goods and services is due out at 8:30 a.m. ET, followed by the Job Openings and Labor Turnover Survey (JOLTS), set to come out at 10 a.m. ET.

Out of the slew of corporates set to release earnings, Allergan, General Motors, Archer Daniels Midland, Tapestry, Dunkin' Brands, Disney, Gilead Sciences, Chipotle Mexican Grill, Match Group, and Snap are some of the major names set to publish before or after Tuesday's bell.

Elsewhere, the yield on the benchmark 10-year Treasury note was lower at around 2.722 percent, while the yield on the 30-year Treasury bond was lower at 3.023 percent. Bond yields move inversely to prices.

Oil prices and bitcoin futures came under pressure as the global sell-off continued to drag on sentiment.

—CNBC's Patti Domm contributed to this report