U.S. stocks softened on Tuesday, closing in negative territory as investors began the holiday-shortened week by taking profits in the wake of a sustained rally amid signs of weakening global demand.

Microsoft is likely to receive an EU antitrust warning about its $69 billion bid for "Call of Duty" maker Activision Blizzard , people familiar with the matter said, that could pose another challenge to completing the deal.

A week after China began dismantling its tough 'zero-COVID' controls, the World Health Organization warned of "very tough" times ahead and state media reported some seriously ill patients at hospitals in Beijing, raising fears of a wave of infections.