Before the bell: Stocks set for a second day of gains

Still, reports out of Asian countries continued to show slumping economies, although not all is as bad. While China reported another sharp drop in its exports, it also recorded a jump in auto sales. Meanwhile, in Japan, there was a smaller-than-expected drop in machinery orders. In Europe, the Bank of England opened a new front in its effort against deflation today as it prepares to buy government bonds with newly created money.

In the U.S., the Obama administration plans to use capital injections as an incentive to get U.S. banks to sell distressed securities to investors. U.S. Treasury Secretary Timothy Geithner pledged on Tuesday to "do what is necessary" to jolt the United States out of recession.

On the economic front, the number of completed U.S. foreclosures in February was the highest monthly total since the crisis began, increasing 67% from January, according to data from Foreclosures.com. Meanwhile, the volume of mortgage applications filed last week increased a seasonally adjusted 11.3% compared with the week before, according to Mortgage Bankers Association statistics released Wednesday. Also today, the February Treasury budget will be released at 2 p.m. ET.

Oil prices slipped Wednesday below $46 ahead of the government's weekly crude inventories report, which comes out at 10:30 a.m. ET.

The question on everybody's mind is whether Tuesday's rally is the beginning of a bull cycle, or a bear-market rally. Most analysts believe it is the latter as more bad news is ahead.