Futures on major U.S. indices pared earlier gains and point to a lower opening on Monday as investors believe that the bailout of Irish banks will not be enough to ensure the region's financial stability.

Futures on the S&P 500 are down 0.33 percent, futures on the Dow Jones Industrial Average are down 0.23 percent and Nasdaq100 futures are down 0.18 percent.

Moody's Investors Service said on Monday that a multi-notch downgrade of Ireland's Aa2 rating is now the most likely outcome of its credit review as rescue package transfers the burden of banking problem to the state.

Earlier today, US futures gained on the news that the Irish government agreed to request a bailout from the European Union and the International Monetary Fund (IMF) the size of which is likely to be 80 to 90 billion euros.

Separately, the UK and Sweden have indicated that they are willing to make individual loans to Ireland. UK banks are heavily exposed to Irish debt and Ireland is a big exports market for the UK, so Britain has strong incentives to financially shore up its neighbor.

On the earnings front, Tyson Foods reported a fourth quarter net income of $208 million or $0.57 per share from a loss of $457 million, or $1.23 per share in the same period a year earlier.

Meanwhile, Hewlett-Packard and Analog Devices will report their quarterly earnings after the markets close.

On Friday, US stocks finished a volatile week with modest gains, finishing flat for the week as a whole.

Crude oil futures fell 0.15 percent to $81.86/barrel while gold futures rose 0.06 percent.

The euro declined 0.26 percent to 1.3637 against the dollar and the yen gained 0.01 percent against the greenback.

European stock markets pared earlier gains and are currently trading lower with FTSE 100 down by 50.75 points, DAX30 down by 11.01 points and CAC 40 down by 24.69 points.