WASHINGTON (dpa-AFX) - After closing higher for two straight sessions, stocks are likely to see further upside in early trading on Friday. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.8 percent.
Stocks may continue to benefit from bargain hunting, as the major averages continue to recover from their worst levels in over a month.
Traders seem to be coming to terms with the likelihood of another 75 basis point interest rate hike by the Federal Reserve later this month.
Worries about the impact of the Fed's aggressive interest rate hike strategy may continue to lead to some trepidation, but many feel higher rates have been priced into the markets following recent weakness.
Overall trading activity may be somewhat subdued, however, as traders look ahead to next week's reports on consumer and producer price inflation.
While the Fed is widely expected to announce another 75 basis point increase in interest rates after its September meeting, the inflation data could impact expectations regarding future rate hikes.
Reports on retail sales, industrial production and consumer sentiment are also likely to attract attention next week.
Shortly after the start of trading, the Commerce Department is scheduled to release its report on wholesale inventories in the month of July. Wholesale inventories are expected to increase by 0.8 percent.
Stocks saw significant volatility during trading on Thursday, with the major averages showing wild swings before eventually the day firmly positive. With the upward move on the day, the major averages extended the recovery rally seen on Wednesday.
The major averages continued to recover after ending Tuesday's trading at their lowest closing levels in over a month. The Dow climbed 193.24 points or 0.6 percent to 31,774.52, the Nasdaq rose 70.23 points or 0.6 percent to 11,862.13 and the S&P 500 advanced 26.31 points or 0.7 percent to 4,006.18.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index rose by 0.5 percent, while Hong Kong's Hang Seng Index spiked by 2.7 percent.
The major European markets have also shown strong moves to the upside on the day. The German DAX Index, the U.K.'s FTSE 100 Index and the French CAC 40 Index are all up by 1.5 percent.
In commodities trading, crude oil futures are jumping $1.57 to $85.11 a barrel after surging $1.60 to $83.54 a barrel on Thursday. Meanwhile, after slipping $7.60 to $1,720.20 an ounce in the previous session, gold futures are climbing $10.40 to $1,730.60 an ounce.
On the currency front, the U.S. dollar is trading at 142.33 yen versus the 144.11 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0048 compared to yesterday's $0.9997.
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