US pre-open: Futures trade higher following Wall Street's worst week since October

Wall Street futures were in the green ahead of the bell on Monday as major indices looked set to attempt a bounce back from their worst week since October.

As of 1220 BST, Dow Jones futures were up 0.60%, while S&P 500 and Nasdaq-100 futures were up 0.45% and 0.46%, respectively.

The Dow Jones closed 533.37 points lower on Friday after news that the Federal Reserve had raised its inflation expectations and forecast rate hikes in 2023 earlier in the week sent stocks into the red.

The effects of the Fed's policy meeting last week were still being felt across global markets at the start of the new week, with stocks and bond yields having fallen as a result of the news amid a sharp repricing of risks due to the central bank raising rates.

Markets.com's Neil Wilson said: "The funny thing about all this is that given the data coming out of the US the Fed didn’t do anything terribly surprising, it just seems to have caught some by surprise by saying it wasn't going to keep things super easy forever. Let's be clear – this is not a shift away from average inflation targeting or somehow the Fed abandoning its employment-first approach: only a realisation that two and a half years from now the economy should be pretty well recovered, and inflation will have been running above 2% for a good amount of months, so some tightening would be warranted. Yields declining after a 'hawkish' Fed is frankly odd, and indicates the market thinks the stance is appropriate to keep a lid on inflation."

On the macro front, the Chicago Federal Reserve's national activity index for May will be posted at 1330 BST, St Louis Fed president Jim Bullard and Dallas Fed president Robert Kaplan will speak virtually on an Official Monetary and Financial Institutions Forum panel at 1400 BST, while New York Federal Reserve president John Williams will deliver a speech at 200 BST.

No major corporate earnings were slated for release on Monday.