Futures point to modest rebound after selloff

NEW YORK (Reuters) - U.S. stock index futures were slightly higher on Wednesday, implying a modest rebound from a sharp decline in the previous session, though questions remains about when the Federal Reserve would adjust its rate policies.

* Wall Street fell sharply on Tuesday, with the S&P 500 suffering its biggest one-day decline in two months, a drop that surpassed a selloff of similar magnitude on Friday. The benchmark index is down about 2.7 percent over the past three sessions, while the CBOE Volatility index <.VIX>, a measure of investor anxiety, is up almost 19 percent over that period.

* The weakness has come on increasing view the Fed may raise interest rates as soon as June. Those worries pushed the U.S. dollar to a nearly 12-year peak against the euro on Tuesday, and added to concerns the dollar will continue to weigh on U.S. multinationals' earnings.

* The U.S. Dollar index <.DXY> stayed strong on Wednesday, up 0.9 percent. The index has risen in five of the past six sessions, up about 4.3 percent over that period. The euro fell 1.2 percent and hit a 12-year low.

* Despite the recent weakness, which took the Dow and S&P into negative territory for the year on Tuesday, the S&P is just 3.5 percent from a record close hit earlier this month. It is also about four points away from its 100-day moving average of 2,040.27. If the S&P breaks below that level, that could be a weak medium-term momentum.

* Energy shares will be in focus following a drop of more than 3 percent in crude oil prices on Tuesday. U.S. crude futures were flat at $48.28 per barrel on Wednesday, and while oil is up more than 10 percent from a bottom reached in late January, it remains down more than 55 percent from a high reached in June.

* In company news, Zogenix Inc late Tuesday said it would sell its Zohydro business to Pernix Therapeutics Holdings Inc in a deal that could be worth nearly $400 million.

* Wendys Co fell 2.3 percent to $10.50 in premarket trading a day after Credit Suisse started coverage on the company with an underperform rating.

Futures snapshot at 6:57:

* S&P 500 e-minis were up 9.25 points, or 0.45 percent, with 136,777 contracts changing hands.

* Nasdaq 100 e-minis were up 14.25 points, or 0.33 percent, in volume of 17,903 contracts.

* Dow e-minis <1YMc1> were up 62 points, or 0.35 percent, with 20,256 contracts changing hands.

(Editing by W Smon)

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