Stock index futures rose on Wednesday, following a three-day equities decline, on hopes the European debt crisis might ease after Germany's top court smoothed the way for Berlin's participation in bailout packages.
European stocks rebounded from a two-year low, rising 2 percent, after the German court rejected a series of lawsuits aimed at blocking the country's participation in bailouts for Greece and other euro zone countries.
The court also said the government must seek approval of a parliamentary committee before granting aid, which could further slow a response for help.
We've been in a trading range and yesterday we hit the bottom of that. The news out of Europe looks positive for the market, but I see this as a short-term technical rebound, said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
Bank of America Corp
S&P 500 futures advanced 11.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 103 points, and Nasdaq 100 futures gained 25.25 points.
President Barack Obama, facing waning confidence among Americans in his economic stewardship, plans some $300 billion in tax cuts and government spending as part of a job-creating package, according to various reports. Obama will unveil his plan in a speech on Thursday.
Stocks fell for a third day on Tuesday on fears Europe was failing to tackle its debt crisis, prompting worries the market was heading to new lows for the year.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)