US Stock Futures Rise as Tesla and Economic Developments Capture Attention

U.S. stock index futures experienced a rise on Friday, driven by a significant recovery in Tesla shares as tensions cooled between CEO Elon Musk and President Donald Trump. The electric vehicle titan's shares lurched upwards by 4.2% in premarket trading, rebounding after Thursday's steep decline prompted by political disputes threatening government contracts.

This positivity comes amid a backdrop of looming economic concerns. Uneasy investors are focusing on the monthly payrolls data expected later in the day, looking for insights into the labor market's condition. The data will help gauge potential directions for Federal Reserve interest rates, with expectations for rate cuts before the year's end.

Tensions persist though, as President Trump and China's Xi Jinping engaged over critical mineral trade issues, leaving key disputes unresolved. Concurrently, Nasdaq and S&P 500 posted strong May gains, driven partially by improving trade relations. Meanwhile, market movements also impacted companies like Broadcom, Amazon, and Lululemon due to investor sentiment on various earnings and trade cost factors.

(With inputs from agencies.)