The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a lower open on Wednesday, with stocks likely to see further downside following the moderate pullback in the previous session.

Lingering uncertainty about the outlook for trade and the global economy may weigh on the markets following the surge seen over the past several weeks.

Stocks have shown a substantial recovery from their early April lows, but traders have recently been questioning the strength of the rebound amid a lack of clear progress on new trade deals.

A continued increase by bond yields may also generate some selling pressure, with the thirty-year bond yield climbing above 5 percent due to concerns a new U.S. tax bill could worsen the country’s deficit.

Overall trading activity is likely to remain relatively subdued, however, as a lack of major U.S. economic data keeps some traders on the sidelines.

The U.S. economic calendar picks back up in the coming days, with reports on weekly jobless claims and new and existing home sales likely to attract attention.

After recovering from an early slump to end the previous session slightly higher, stocks moved back to the downside during trading on Tuesday. The major averages all moved lower, although selling pressure remained somewhat subdued.

The major averages climbed well off their worst levels going into the end of the day remained in negative territory. The Dow fell 114.83 points or 0.3 percent to 42,677.24, the Nasdaq slid 72.75 points or 0.4 percent to 19,142.71 and the S&P 500 declined 23.14 points or 0.4 percent to 5,940.46.

The weakness on Wall Street came as some traders looked to cash in on the strong upward move seen over the past several weeks.

The major averages have climbed well off their April lows amid easing trade concerns, with the Nasdaq and the S&P 500 reaching their best levels in almost three months.

However, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon has warned stock market values may not properly represent the risks of higher inflation and even stagflation.

“My own view is people feel pretty good because you haven’t seen effective tariffs,” Dimon said during the financial giant’s annual investor day meeting on Monday. “The market came down 10%, [it’s] back up 10%. That’s an extraordinary amount of complacency.”

On the other hand, Carson Group chief market strategist Ryan Detrick told CNBC the rebound should be taken seriously even amid lingering concerns about trade and the economy.

“All these worries and concerns are real. We’re not ignoring everything that’s out there,” Detrick said. “But are we listening to what the market’s doing, right?

“The previous 27 trading days, the S&P 500 is up close to 20 percent,” he added. “That’s not a bear market rally. That’s not a short-covering rally,”

While most of the major sectors ended the day showing only modest moves, housing stocks saw notable weakness, dragging the Philadelphia Housing Sector Index down by 1.2 percent.

Transportation and networking stocks also saw some weakness on the day, while gold stocks moved sharply higher along with the price of the precious metal.