U.S. stocks fell about 1 percent on Friday as another month of tepid jobs growth underlined fears the economy was stalling, although it raised hopes for a further easing in monetary policy by the Federal Reserve.

Chicago Federal Reserve Bank President Charles Evans, one of the Fed's most dovish policymakers, said in remarks prepared for delivery to the Sasin Bangkok Forum on Monday that U.S. policymakers should unleash a new round of bond purchases to bring down unemployment, even at the risk of driving inflation temporarily higher.

China's annual consumer inflation cooled more than expected to 2.2 percent in June, from May's 3.0 percent, official data showed on Monday, giving Beijing more scope to ease monetary policy to support growth without stoking upward price pressures.

China's central bank unexpectedly cut benchmark interest rates last week for the second time in a month in a bid to bolster growth.

Euro zone finance chiefs will try to flesh out plans to reinforce the single currency on Monday but their talks in Brussels may do little more than highlight the limitations of last month's deal to help indebted states and banks.

On the macro front, May U.S. consumer credit numbers will be released at 3 p.m. EDT.

Alcoa (AA.N) kicks off the U.S. second-quarter earnings season on Monday, with the aluminum giant seen managing only a 5 cent per share profit for the past three months.

Celgene Corp (CELG.O) is one of two companies discussing whether to bid for Human Genome Sciences Inc (HGSI.O), which seeks an alternative to a hostile offer by British drugmaker GlaxoSmithKline Plc (GSK.L), a source familiar with the situation said.

Boeing Co. (BA.N) looks set to start Europe's big air show with orders from at least two leasing companies - deals that should help the U.S. plane maker consolidate its lead in orders over Airbus (EAD.PA) this year, the Wall Street Journal said.

PepsiCo (PEP.N): In the most visible sign yet of its efforts to curb its reliance on soda sales, the company this month will start selling yogurt in the Northeast and mid-Atlantic states, the New York Times said.

The Dow Jones industrial average .DJI shed 124.20 points, or 0.96 percent, to 12,772.47. The Standard & Poor's 500 Index .SPX was down 12.90 points, or 0.94 percent, at 1,354.68. The Nasdaq Composite Index .IXIC was down 38.79 points, or 1.30 percent, at 2,937.33.

(Reporting by Tricia Wright; Editing by Toby Chopra)

• A Permanent Economic Emergency