Source: Sharecast
The Dow, which has fallen for four days straight, was showing a gain of just 0.17% in pre-market trading at 0503 ET, while futures on the S&P 500 and Nasdaq were up 0.10% and 0.09% respectively.
Geopolitical risk has dampened market sentiment in recent days after Vladimir Putin warned the US that the threshold for the use of nuclear weapons has now been lowered following Joe Biden's decision to allow Ukraine to use US weapons to strike inside Russia.
Under the new doctrine, Russia will consider using nuclear weaponry if it, or its allies, were met with the use of "conventional weapons that created a critical threat to their sovereignty and (or) their territorial integrity".
"The initial reaction to comments suggesting that the threshold for the use of nuclear weapons had lowered understandably sideswiped markets, with a move to haven assets such as gold and Treasury bonds, lowering yields as prices rose," said Richard Hunter, head of markets at Interactive Investor.
"More conciliatory remarks from a Russian official later soothed nerves, although the tension over recent days has risen, let alone any concerns over how the new administration in the US might react to the rhetoric."
The world's largest company, Nvidia, is expected to report impressive quarterly sales when the markets close on Wednesday evening, with a projected 83% increase in third-quarter revenue from the previous year. The stock has so far rocketed 194% this year, having jumped 16% since its second-quarter earnings release.
"Expectations are high as the company's shares have already surged 5% overnight. Trading in options suggests a potential swing of nearly $300bn in market value, which could lead to a potentially chaotic trading session ahead," said Patrick Munnelly, partner of market strategy at Tickmill Group.
In other corporate news, Comcast futures were rising after the entertainment group reportedly greenlit a $7bn spinoff of NBCUniversal cable TV networks.
The economic data calendar was looking relatively quiet, with the MBA's weekly mortgage applications survey the only major release. However, scheduled speeches from three Federal Reserve policymakers will be closely watched, with vice chair Michael Barr, governor Lisa Cook and governor Michelle Bowman all due to give comments later on.