The major U.S. index futures are pointing to a moderately higher opening on Thursday following the notable downward move seen over the two previous sessions.
The upward momentum on Wall Street comes as traders may look to go bargain hunting, picking up stocks at reduced levels following recent weakness.
A rebound by treasury yields may also generate some positive sentiment, with the yield on the benchmark ten-year note bouncing off its lowest levels since September of 2017.
The recent decline by treasury yields has led to concerns about the outlook for the economy and the possibility of a recession.
Buying interest may be somewhat subdued, however, as traders may be reluctant to get back into the markets amid lingering concerns about the U.S.-China trade dispute.
Amid a continued escalation of the rhetoric, Chinese Vice Foreign Minister Zhang Hanhui accused the U.S. of ?economic terrorism? by raising tariffs on Chinese goods.
?We oppose a trade war but are not afraid of a trade war,? Zhang said. ?This kind of deliberately provoking trade disputes is naked economic terrorism, economic homicide, economic bullying,?
After turning lower over the course of Tuesday?s session, stocks saw some further downside during trading on Wednesday. The Dow slid to its lowest closing level in well over three months, while the Nasdaq and the S&P 500 ended the day at more than two-month closing lows.
The major averages ended the session well off their worst levels but still firmly in negative territory. The Dow slumped 221.36 points or 0.9 percent to 25,126.41, the Nasdaq fell 60.04 points or 0.8 percent to 7,547.31 and the S&P 500 dropped 19.37 points or 0.7 percent to 2,783.02.
Worries about a further escalation of the U.S.-China trade dispute contributed to the weakness on Wall Street amid concerns China may seek to weaponize its dominance in rare earth minerals.
Reports suggest China is considering restricting the export of rare earth minerals, which are crucial for the U.S. technology industry.
The latest developments on the trade front have added fuel to investor fears that the dispute between the U.S. and China could escalate into a full-fledged trade war.
Trade war worries have increased the appeal of safe havens such as U.S. treasuries, resulting in a sharp decline in bond yields.
The slump in bond yields has in turn added to concerns that the U.S. could be headed for a recession or at least a notable slowdown in the pace of economic growth.
Treasuries saw further upside on the day, driving the yield on the benchmark ten-year note down to its lowest level since September of 2017.
Overall trading activity was somewhat subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.
Traders may have been looking ahead to the release of reports on first quarter GDP, pending home sales and personal income and spending in the coming days.
Pharmaceutical stocks turned in some of the market’s worst performances on the day, with the NYSE Arca Pharmaceutical Index falling by 1.5 percent.
Johnson & Johnson (JNJ) helped lead the sector lower after Oklahoma Attorney General Mike Hunter claimed the healthcare giant’s greed helped fuel the opioid crisis in opening remarks in a multi-billion-dollar lawsuit.
Significant weakness was also visible among biotechnology stocks, as reflected by the 1.5 percent drop by the NYSE Arca Biotechnology Index.
Utilities, commercial real estate and software stocks also moved notably lower, although most sectors ended the day well off their worst levels.
Adedapo Adesanya 
Dipo Olowookere