US pre-open: Stocks set for rebound

US futures pointed to a slightly firmer open on Wall Street following the recent Fed-fuelled losses.

At 1130 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.3% stronger.

“US stocks look set for a higher open amid a rise in oil prices and stronger global sentiment ahead of the release of existing homes sales data and comments from the Fed’s Daniel Tarullo,” said CMC Markets’ Jasper Lawler.

At the same time, oil prices were choppy, trading fairly flat after gaining earlier in the session amid political instability in Nigeria, where the country’s petroleum installations are being attacked.

West Texas Intermediate was up 0.2% to $48.25 a barrel and Brent crude was down 0.1% to $48.78.

On Thursday, stocks in the US ended down but off lows as investors continued to mull over the possibility that the Federal Reserve might hike rates as early as June following the release of hawkish minutes and comments by New York Fed President William Dudley and Fed Reserve Bank of Richmond President Jeffrey Lacker.

But stocks in the US looked set for a rebound on Friday, supported by positive sessions in Asia and Europe.

Meanwhile, not everyone was convinced that June would be the right time for the US central bank to move on rates.

“The fact is that while a June hike is increasingly credible, it is still the least likely of their two options. With huge economic implications to the Brexit vote, it is unlikely we will see any action from the Fed next month,” said IG’s Joshua Mahony.

On the corporate front, retailer Gap was a touch higher in pre-market trade after saying late on Thursday that it was closing all its Old Navy stores in Japan and posting a 47% drop in first-quarter profit.

Electric car maker Tesla Motors was also higher in pre-market trade following media reports it has raised $1.46bn in capital from the sale of new common stock.

Drilling contractor Ocean Rig UDW rose sharply after posting better-than-expected first-quarter numbers late on Thursday.

Yahoo was under the cosh, however, following a press report that bidders for the company were likely to bid less than initially thought.

Foot Locker, Campbell Soup and Deere & Co were among the companies slated to report on Friday.

US existing home sales data for April is due at 1500 BST. Before that, investors will watch out for a speech by Fed governor Daniel Tarullo at 1400 BST.