Stocks: Where do we go from here?

NEW YORK (CNNMoney)

Investor sentiment has turned fearful over the past week on rising concern that some valuations have become stretched at a time of modest earnings growth.

U.S. stock futures for all three major indexes were edging higher.

Related: Fear & Greed Index

U.S. stocks closed in the red Monday. The Nasdaq closed down more than 1% after sliding a combined 3.6% on Thursday and Friday. The Dow and S&P 500 also fell more than 1%. All three major U.S. stock indexes are now negative for the year.

In corporate news Tuesday, Alcoa (AA, Fortune 500) will report earnings after the closing bell.

Related: CNNMoney's Tech30

European markets were little changed in early trading, showing some resilience in the face of Wall Street's sharp sell-off yesterday.

Asian markets were a mixed bag on Tuesday. Tokyo's Nikkei fell 1.4% as the central bank ended a policy meeting without any hint of further economic stimulus.

China's benchmark Shanghai Composite index rose 1.9%. Chinese markets, which were closed Monday for a holiday, have been supported by hopes the government will take steps to boost faltering growth.