By Fred Imbert, CNBC–

  • Tumbling yields can signal global growth concerns from investors and fuel sharp pullbacks in equity markets. An escalation in trade tensions between China and the United States has accentuated these fears in recent days.
  • Investors are also monitoring the yuan, after China’s central bank set the official reference rate for the Chinese currency at 7.0039 yuan per dollar on Thursday — the weakest level since April 21, 2008.

U.S. stock index futures were higher Thursday morning following a wild ride for Wall that saw the S&P 500 log its biggest intraday comeback of the year.

At around 02:30 a.m. ET, Dow futures rose 121 points, indicating a positive open of more than 106 points. Futures on the S&P and Nasdaq were also higher.

Wall Street ended Wednesday little changed despite earlier falls following a dramatic move in bond yields. The U.S. 10-year Treasury yield briefly dipped below 1.6% to hit a 2016 low, but was back up near 1.7412% by Thursday morning.

Tumbling yields can signal global growth concerns from investors and fuel sharp pullbacks in equity markets. An escalation in trade tensions between China and the United States has accentuated these fears in recent days.

Investors are also monitoring the yuan, after China’s central bank set the official reference rate for the Chinese currency at 7.0039 yuan per dollar on Thursday — the weakest level since April 21, 2008. Overnight, China reported trade data that was better-than-expected despite mounting economic pressure from elevated U.S. tariffs. It appeared to offer investors some respite from fears of a global currency war.

Meanwhile, President Donald Trump made fresh attacks on the Federal Reserve Wednesday, saying on Twitter: “Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much.” “Incompetence is a terrible thing to watch,” he added.

Donald J. Trump

✔@realDonaldTrump

“Three more Central Banks cut rates.” Our problem is not China – We are stronger than ever, money is pouring into the U.S. while China is losing companies by the thousands to other countries, and their currency is under siege – Our problem is a Federal Reserve that is too…..

On the data front, there will be jobless claims at 08:30 a.m. ET and wholesale trade numbers due at 10:00 a.m. ET.

In corporate news, Kraft Heinz and Viacom will be reporting before the bell. Uber, Dropbox, News Corp and Axa Equitable will update investors after the bell.