U.S. stock index futures steadied on Wednesday after the biggest Wall Street selloff in three months, with investors focused on President Donald Trump's speech at Davos after his plans to acquire Greenland jolted investors earlier this week.

Stock futures inched higher and gold prices extended this week’s record-setting rally, a day after President Trump’s rhetoric on Greenland rattled Wall Street, leading the Dow to end Tuesday’s session more than 870 points lower.

Stock index futures were little changed Wednesday as investors focused on President Donald Trump’s upcoming speech at Davos, with markets watching closely for signals on which policy proposals officials might actually pursue.

It is often the case that U.S. equity index futures rally off the lows following a session when American investors were on holiday. The buy-the-dip mentality kicks in, particularly if the reason for the initial retreat is geopolitical.

Futures extended gains after a strong session on Wall Street, where stocks rebounded from a steep selldown earlier in the week. Trump had earlier threatened to tariff eight European countries until they handed over Greenland to the United States.

Stock futures saw a slight upward movement on Tuesday night after major averages in the US clocked their worst day in three months.

With earnings season about to kick off, U.S. stock futures slipped Sunday, after the Dow and S&P 500 closed Friday at record highs.

"As such, the more likely outcome, in our view, is that both sides recognize that a major escalation would be a lose-lose proposition, and that compromise eventually prevails."