Dow futures were higher by 280 points, or 1%. S&P 500 futures added 0.8%. Nasdaq-100 futures were higher by 0.9%. The S&P 500 flirted with an all-time high on Tuesday before a late-day sell-off led by tech shares knocked the benchmark down. The S&P 500 is 1.8% from its February record.
After the bell on Tuesday, President Donald Trump said the U.S. government will purchase 100 million doses of Moderna's experimental coronavirus vaccine, which is currently in late-stage human trials.
Vaccine hopes lifted shares of cruise lines and airlines in premarket trading Wednesday. Carnival and United shares each rose 2% in premarket trading.
The S&P 500 has rallied more than 52% since its March low.
Key tech shares were rebounding Wednesday morning. Apple and Microsoft were up 1% in the premarket.
"A combination of the S&P 500 Index making its first real attempt at an all-time record high after seven straight days of advances, its old leadership — technology and FANNGs — continuing a recent trend of struggling and another day without an agreement nor even renewed talks in DC regarding a new stimulus package finally caught up with the stock market," Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. "The first signs of trouble today brought a lot of selling by investors anxious to lock-in recent gains."
Investors are also juggling uncertainty over a second coronavirus stimulus bill. Over the weekend, Trump signed four executive orders to extend some coronavirus aid. Treasury Secretary Steven Mnuchin said Monday the White House is open to resuming coronavirus aid talks with Democrats and putting more relief money on the table to reach a compromise.
The Labor Department is set to release key inflation data on Wednesday at 8:30 a.m. ET. Economists polled by Dow Jones are expecting the consumer price index to increase 0.3% in July, after jumping 0.6% in June. Core CPI is expected to rise by 0.2%, or 1.2% on an annualized basis, according to Dow Jones.
Earnings seasons continues on Wednesday with Cisco Systems, Lyft and SmileDirectClub all reporting after the closing bell.
On Tuesday, former Vice President and presidential candidate Joe Biden announced Sen. Kamala Harris of California will join him on the Democratic ticket.