MARKET SNAPSHOT: U.S. Stocks Tipped For More Gains As Investors Weigh Up U.K. Election Results

By Barbara Kollmeyer, MarketWatch Features Dow Jones Newswires

Gains set to continue for Wall Street from Thursday

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U.S. stock futures were moving modestly higher in early trade on Friday, as investors weighed up the implications of a surprising result in the U.K. election as a dramatic week of events drew to a close.

Dow Jones Industrial Average futures rose 27 points, or 0.1%, to 21,161, while S&P 500 futures gained 2.8 points, or 0.1%, to 2,433.25. Nasdaq-100 futures added 3.75 points to 5,896.75.

U.S. stocks managed modest gains on Thursday, with the Dow industrials less than 0.1% higher and the S&P 500 up 0.65 point. The Nasdaq Composite rose 0.4%, closing at a record.

In that session, equities nabbed mostly modest gains after investors shrugged off the testimony of former FBI Director James Comey ( in front of the U.S. Senate Intelligence Committee and its potential threat to destabilize U.S. President Donald Trump. Banks and uitilties rose as the idea of the so-called reflation trade seemed to show signs of revival.

That reflation trade is linked to investor optimism over the expectations for growth-friendly policies from Trump.

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U.S. stock futures were tracking gains in Europe, where the FTSE 100 index moved 0.6% higher, getting a boost ( as the British pound slumped ( the election result. With results in for all but a few seats in the U.K. general election, the vote has ended in a "hung parliament," ( where no single party holds a majority.

See:'Worst possible outcome' -- analysts react to U.K. early election results (

U.K. Prime Minister Theresa May has reportedly said she would not step down (, amid pressure for her to quit after what many see as a disastrous election campaign. Instead, she is looking to form a minority government, where her Conservative Party would need to rally outside support in each parliamentary vote.

The lack of a clear winner in the ballot also creates many questions for the Brexit process, analysts said. May called the election as a way to strengthen her hand ahead of negotiations for the U.K. to exit from the European Union. She had faced hurdles in parliament to her approach.

The only top-tier economic data scheduled for release Friday is an update on wholesale inventories for April, due at 10 a.m. Eastern Time.

Other markets: The British pound sank to seven-week low against the dollar, dropping to $1.2724 from $1.2957 in late trading on Thursday. The dollar was firmer across the board (, with the U.S. dollar index , which compares the dollar to a half-dozen major rivals, rising to 97.42 from 97.02 late Thursday.

Crude oil prices ( traded mostly flat, while gold edged lower.

In Asia ( , the Nikkei 225 index gained on yen weakness, returning to the 20,000 level, with other markets mixed.

(END) Dow Jones Newswires

June 09, 2017 04:50 ET (08:50 GMT)