U.S. stock index futures rebounded Wednesday as easing Treasury yields boosted megacaps, while investors awaited developments on a U.S. funding bill and inflation data this week to gauge the outlook for the Federal Reserve's monetary policy.

A pullback in the 10-year Treasury yields provided some relief to megacap growth stocks including Apple , Microsoft, Tesla and Alphabet , up between 0.4% and 0.6%, in premarket trading.

Amazon.com edged 0.2% higher after Tuesday's sell-off following the U.S. Federal Trade Commission's antitrust lawsuit against the online retailer.

At 7:10 a.m. ET, Dow e-minis were up 92 points, or 0.27%, S&P 500 e-minis were up 15.75 points, or 0.37%, and Nasdaq 100 e-minis were up 51.75 points, or 0.35%.

All the three major stock indexes closed over 1% lower on Tuesday as 10-year Treasury yields held their multi-year highs, with investors wrestling with prospects for a long period of high interest rates and an economic fallout.

"Despite the possibilities of a market recovery as window dressing in the last days of the quarter is likely to occur, the near-term outlook remains weak," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

However, markets are bracing for some more volatility, with policymakers projecting elevated rates until the end of 2024, boosting Treasury yields, which are sensitive to interest rate expectations and seen as risk-free due to government backing.

The S&P 500 and the Nasdaq are set for their worst monthly showing so far this year, while all the three indexes including the Dow are eyeing their first quarterly decline in 2023.

Meanwhile, data also showed declines in China's industrial profits were easing on the back of policy support, while the central bank also vowed to bolster economic recovery.

Investors also looked forward to durable good data for August, due at 8:30 a.m. ET, and second-quarter GDP and monthly personal consumption expenditures price index later in the week, with Federal Reserve Chair Jerome Powell's remarks also on tap.

Traders' bets on the benchmark rate remaining unchanged in November and December stood around 80% and 64%, respectively, according to CME's FedWatch tool. Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to over 34% in June and July.

On the political front, the U.S. Senate on Tuesday took a step forward on a bipartisan bill to stop a government shutdown on Sunday, while the House sought to push ahead with a Republican-backed measure. The current partisan gridlock has begun to darken Wall Street's view of U.S. government credit.

Among single stocks, Rivian Automotive gained 1.1% on plans to use subscription models for monetizing various features in cars.

Costco dipped 2% even though the wholesale retailer reported better-than-expected fourth-quarter results, with analysts pinning the fall on broader market concerns.