Wall Street Climbs on Federal Reserve Optimism and Robust Labor Market

Futures tied to Wall Street's main indexes climbed Friday, buoyed by dovish signals from Federal Reserve officials and a resilient labor market. Nvidia led early gains. Despite earlier volatility, major indexes improved as jobless claims fell. Investors eye upcoming consumer prices and retail sales data for further insights.

Wall Street futures rose on Friday after signals from Federal Reserve officials and positive labor market data boosted investor sentiment.

Nvidia spearheaded the megacap technology stock gains with a 2.5% increase in premarket trading. The market's earlier turbulence, triggered by July's negative job data and a surge in yen due to the Bank of Japan's rate hike, has subsided significantly. The CBOE Volatility Index dropped to 23.21 points from a high of 65.73.

Thursday saw U.S. stocks increase as jobless claims fell more than expected, easing concerns over a deteriorating labor market. All main indexes, however, remain lower for the week, with the Dow Jones dipping by 0.7%.

Federal Reserve policymakers expressed confidence in cooling inflation, suggesting potential interest rate cuts based on future economic data. Investors are now awaiting next week's consumer prices and retail sales readings for signs of a smooth landing for the U.S. economy.

(With inputs from agencies.)