At around 02:40 a.m. ET, Dow futures rose 65 points, indicating a positive open of more than 43 points. Futures on the S&P and Nasdaq were both marginally higher.
It comes after a recession indicator in the bond market worsened on Tuesday, while fears about a protracted trade dispute between the world’s two largest economies kept a lid on market sentiment.
The spread between the 10-year Treasury yield and the 2-year rate fell to negative 5 basis points in the previous session, its lowest level since 2007. This is called a yield-curve inversion. Experts fear it because in the past it has preceded recessionary periods.
The 3-month Treasury bill rate also traded higher than the 30-year bond yield.
Meanwhile, the U.S.-China trade war is now in its second year. The ongoing dispute has placed an increasing strain on the global economy, prompting policymakers to respond with interest rate cuts and stimulus measures to bolster growth.
The White House is scheduled to impose the first stage of U.S. tariffs on $300 billion worth of Chinese goods on Sunday. China is set to respond with tariffs on U.S. products on the same day.
Okta, Box and Five Below are expected to publish their latest quarterly figures after market close.
There are no major economic data reports scheduled on Wednesday.