US equity futures rose on Friday, indicating gains for major indices at the end of a turbulent week in which a surge in inflation rocked markets.
S&P 500 futures rose 0.7%. A lead past the opening bell should still leave the overall market gauge in the red for this week, its worst since the end of February. Contracts for the Dow Jones Industrial Average rose 0.5%. Futures on the highly technological Nasdaq-100 rose more than 1%.
Stocks recovered some losses on Thursday after slipping in response to data showing consumer prices surged in April, which added to evidence from commodity markets of rising inflation. Investors fear that a surge in commodity prices could eat away at profit margins. A surge in consumer price inflation could also prompt the Federal Reserve to cut back on the easy money policies that have supported stocks.
But several Fed officials said this week that the central bank has no plans to withdraw that support, helping calm markets. The Fed needs to see several more months of jobs and inflation data before determining when to start tightening monetary policies, Governor Christopher Waller said Thursday.
“The Fed has been very consistent,” said Paul Donovan, chief economist at UBS Global Wealth Management. “It tells you something: it tells you [higher inflation] is clearly transient. “