Futures continued to decline Wednesday after the previous session's sharp rally as investors remained cautious over the prospects for the U.S. economy and the ongoing euro zone crisis.
On Tuesday, stocks surged to see its biggest one-day gain since May 2010 in wild day of trading even after the Federal Reserve's statement promising interest rates would remain at their current low level for the next two years did little to alleviate fears over the economy.
According to a Reuters poll, economists saw odds of around one-in-three that the U.S will slip back into recession, heightening expectations the Fed will launch another round of monetary easing.
Goldman Sachs also reviewed its position on monetary stimulus, saying there is a chance that the Fed will resume quantitative easing later this yer or in early 2012.
Meanwhile, gold prices held steady, hovering near an all-time high around $1,778 an ounce. (Read More: What's the Best Way to Invest in Gold?)
In corporate news, HSBC [HBC 44.92 ] confirmed it was selling its $30 billion U.S. credit card arm to Capital One Financial [COF 40.77 ] for a premium of $2.6 billion, as Europe's top bank streamlines its operations by getting rid of unwanted businesses.
On the earnings front, Macy's [M 25.44 ] gained after the department-store chain reported a higher-than-expected profit and raised its earnings forecast.
On the economic front, weekly mortgage applications gained last week as interest rates plunged to their lowest level in 2011, according to the Mortgage Bankers Association.
Wholesale trade inventories for June are due at 10:00 am ET and crude inventories data for the week ending August 6 is also due out at 10:30am ET.
European shares turned negative, led lower by Italian and French banks as renewed concerns over the euro zone sovereign debt crisis overturned some earlier enthusiasm in choppy trade.
Coming Up This Week:
WEDNESDAY: Wholesale trade, oil inventories, 10-yr note auction, treasury budget; Earnings from Macy's, Cisco
THURSDAY: International trade, jobless claims, 30-yr bond auction, money supply; Earnings from Kohl's, Nordstrom, Nvidia
FRIDAY: Retail sales, consumer sentiment, business inventories; Earnings from JCPenney
