NEW YORK (CNN/Money) - U.S. stocks headed for a shaky start Monday morning as investors raised their guard in anticipation of an interest rate hike possibly as early as this June.

Early Monday, the Nasdaq-100 and S&P futures were sharply lower.

For details of Friday's pullback, click above

Overseas, stocks tumbled in Asia, with Tokyo's Nikkei off about 4.8 percent spooked by interest rate concerns on the heels of last Friday's better-than-expected April jobs report. Share prices also slumped in European markets. (Check the latest on world markets)

Interest ratejitters were also reflected in the dollar's rise against the yen and euro.

"On Friday, we had a ratio of 12 to 1 of losers to winners. That's the worst performance since 1997. We also had over 3,000 declining issues. This shows real weakness," said Larry Wachtel, market analyst with Wachovia Securities, told CNN/Money.

YOUR E-MAIL ALERTS Organization of Petroleum Exporting Countries (OPEC) Interest Rates Options and Futures or Create your own Manage alerts | What is this?

"The weakness from Friday carried forward to the international markets and we could get a horrific open here today," Wachtel said. "The concerns stem from the rising rates structure and what we got on Friday was something of a good news, bad news syndrome."

In corporate news, Citigroup Inc. announced Monday it will take an after-tax charge of $4.95 billion, or 95 cents a share, in its fiscal second quarter, due in part to a $2.65 billion pretax class-action settlement with holders of WorldCom securities.

And a multi-billion dollar banking merger could provide some distraction to investors. Atlanta-based SunTrust Banks Inc. (STI: Research, Estimates) announced that it has agreed to buy Memphis, Tenn.-based National Commerce Financial Corp. (FITB: Research, Estimates) in a nearly $7 billion cash-and-stock deal.

The deal, the second major U.S. bank merger announced in the past week, would create a top 10 U.S. bank with $148 billion in assets.

The Dow Jones industrial average and Nasdaq composite index ended the week with losses; the Dow was down 1 percent for the week after a 124-point loss Friday, while the Nasdaq fell 0.1 percent following an almost 20-point drubbing (see chart for details).

Treasury prices slipped in early trading, sending the 10-year note yield up to 4.78 percent from 4.77 percent late Friday.

Brent crude oil futures dropped $1.10 to $35.53 a barrel in London after Saudi Arabia's oil minister suggested that OPEC needs to raise its output ceiling to ease industrial nations' concern about high oil prices. Gold was lower.

As the earnings period winds down, a few names investors will still be keeping an eye on are reports from tech heavyweight Cisco Systems (CSCO: Research, Estimates) on Tuesday, entertainment conglomerate Walt Disney (DIS: Research, Estimates) on Wednesday, computer maker Dell Inc. (DELL: Research, Estimates) and No. 1 retailer Wal-Mart (WMT: Research, Estimates) both on Thursday.  

-- from staff and wire reports