Stock futures were higher early Friday after Treasury Secretary Janet Yellen said a large COVID relief package is needed for a full recovery in the U.S.
Futures for the Dow Jones gathered 95 points, or 0.3%, to 31,458.
Futures for the S&P 500 picked up 17.25 points, or 0.4%, at 3,926.75.
Futures for the NASDAQ Composite improved 83 points, or 0.6%, to 13,716.
The S&P 500 has retreated 0.5%, and the NASDAQ Composite is down 1.6% this week, on track to break their two-week winning streak. The blue-chip Dow is up just 0.1% week to date.
Applied Materials, which makes the equipment used to manufacture semiconductors, gave a better-than-expected second-quarter forecast after the bell Thursday. The shares gained 5% in pre-market trading Friday. Other chip-related stocks also rose, including Lam Research, AMD and Nvidia.
Yellen told the media Thursday that more stimulus is necessary even as some economic data suggested a rebound is already underway. She added a $1.9-trillion stimulus deal could help the U.S. get back to full employment in a year.
The stock market's rally to records has stalled a bit this week as fears of rising rates and higher inflation crept in. The S&P 500 fell for a third straight day on Thursday after a worse-than-expected reading on jobless claims as well as weak guidance from Walmart. The 10-year Treasury yield this week rose to the highest in nearly a year, though on Friday was still at only 1.3%.
Many on Wall Street agree with Yellen that a large stimulus is needed and that a trillion-dollar package, along with a smooth economic reopening this year, will cause the market rally to continue.
The House of Representatives will try to pass a $1.9-trillion coronavirus relief plan before the end of February, Speaker Nancy Pelosi said Thursday. Democratic Congressional leaders may try to pass a package without votes from Republicans.
Overseas, in Japan, the Nikkei 225 fell 0.7%, while in Hong Kong inched higher 0.2%.
Oil prices backtracked 99 cents to $59.53 U.S. a barrel.
Gold prices docked $2.30 to $1,772.70. U.S.