• Hasbro, Michael Kors, 21st Century Fox, Tesla Motors, Yum China and Yelp are some of the corporates set to publish earnings.
  • A number of members of the U.S. Federal Reserve are scheduled to speak on Wednesday.

U.S. stock index futures dropped deep into the red ahead of Wednesday’s open, pulling back from the roller coaster ride seen on Wall Street in the previous session.

Around 5:30 a.m. ET, Dow futures suggested the industrial average would open down roughly 300 points. Nasdaq and S&P 500 futures also pointed to a weak open. The movements seen in U.S. futures come on the back of a wild trading session Tuesday.

Dow Jones Industrials' Massive One Day Drop Of 4.6 Percent Rattles Markets Overseas

Spencer Platt | Getty Images News | Getty Images
Dow Jones Industrials’ Massive One Day Drop Of 4.6 Percent Rattles Markets Overseas

After two major sell-offs, leading U.S. indexes saw sharp swings yesterday, with the Dow Jones industrial average starting Tuesday significantly lower, before rallying and closing up 567.02 points at 24,912.77. The index traded in a range of 1,167.49 points through the course of Tuesday’s session.

Some of the reasons that investors gave for yesterday’s sharp swings included fears over interest rates, obscure volatility funds that use leverage, and computer-driven trading.

The positive sentiment seen on Wall Street yesterday provided a boost for international markets, with Asia-Pacific markets closing mixed to higherWednesday, while trade in Europe was relatively positive, after posting major declines on Tuesday.

While the volatility seen in markets is set to keep markets on edge Wednesday, investors will also pay close attention to data and earnings.

Earnings season continues to be in full swing with Wednesday Hasbro, and Michael Kors set to report before the open, while 21st Century Fox, Tesla Motors, IAC/InterActive, Yum China and Yelp are expected to publish updates after the bell.

Key members of the U.S. Federal Reserve are due to deliver separate remarks Wednesday. Dallas Fed President Robert Kaplan will be in Germany, where he is set to appear at the Institute for Monetary and Financial Stability (IMFS) working lunch. And San Francisco Fed President John Williams is slated to appear in Honolulu, speaking at the Community Leaders Luncheon.

Chicago Fed President Charles Evans will be attending the Iowa Bankers Association Management conference in Des Moines, while New York Fed President William Dudley is set to make an appearance at the “Banking Culture: Still Room for Improvement” in New York.

Investors are also likely to be digesting the latest coming out of the political sphere. Late Tuesday, the U.S. House of Representatives managed to pass a short-term spending bill, which not only would provide support to defense spending for 2018 but also fund the government for another six weeks.

In economic data, mortgage applications are due out at 7 a.m. ET, while consumer credit is due out at 3 p.m. ET.