U.S. stock futures signal a rebound as bond yields fall back.

European stocks and Wall Street futures rebounded on Wednesday as government bond yields retreated lower, a day after a sell-off rattled markets.

The S&P 500 is expected to open 0.7 percent stronger after dropping 2 percent on Tuesday, the most since May. An increase in bond yields incited a sell-off in technology stocks, which dragged markets down. The yield on 10-year Treasury notes climbed above 1.5 percent on Tuesday for the first time since June.

Stocks didn’t completely recover their losses from earlier in the week. The Stoxx Europe 600 rose 0.8 percent after falling 2.2 percent the previous day.

Markets have been more volatile in recent weeks as investors prepare for the Federal Reserve to reduce stimulus, something policymakers have signaled will come this year. Traders are also adapting to the economic recovery from the pandemic, which includes an unusual combination of supply chain bottlenecks, labor shortages in some industries, higher unemployment and rising consumer prices.

In Washington, lawmakers remain deeply divided over spending and raising the nation’s debt limit. On Tuesday, Treasury Secretary Janet L. Yellen warned lawmakers of “catastrophic” consequences if Congress failed to raise or suspend the statutory debt limit.

A measure of stock market volatility rose sharply on Monday but was only the highest in about a week, as stocks have stumbled in September. Last week, traders were unnerved by potential fallout from a default of China’s Evergrande Group, a beleaguered residential developer with $300 billion in debt. The Chinese government has shifted away from the policies that have guided its economy in recent years, tightening regulation on online gaming, data sharing by tech companies, and property developers.

Despite Wednesday morning’s tentative recovery in futures, stocks in the United States are still on track for a decline in September, which would end seven consecutive months of gains. The S&P 500 is down 3.8 percent this month. Nasdaq futures rose 0.9 percent on Wednesday but the index closed 4.7 percent lower for the month on Tuesday.

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