By Fred Imbert and Spriha Srivastava, CNBC–

U.S. stock index futures pointed to a sharply higher open on Tuesday as Wall Street tries to build on a strong rebound seen in the previous session.

At 7:20 a.m. ET, Dow Jones Industrial Average futures were up 258 points, implying a gain of 306.74 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a strong open.

On Monday, stocks erased previous losses as shares of tech companies posted strong rebounds across the board. The Dow closed 34.31 points higher at 24,423.26, erasing a 507-point drop. The S&P 500 rose 0.2 percent to 2,637.72 while the tech-heavy Nasdaq Composite jumped 0.7 percent to 7,020.52.

Market focus is largely attuned to global trade developments, after Beijing confirmed it was still in talks with Washington in an effort to broker a comprehensive trade agreement.

Chinese Vice Premier Liu reportedly said Tuesday that he had been in discussion with U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, with the aim of de-escalating a global trade war.