May 14 (Reuters) - Wall Street’s main indexes were set to open higher at the end of a volatile week marred by worries about rising inflation and a subsequent tightening of monetary policy.
Futures briefly pared gains after data showed U.S. retail sales unexpectedly stalled in April, as the boost from stimulus checks faded. Industrial production and consumer sentiment data will also be released later in the day.
The Dow and the S&P 500 are set for their steepest weekly drop since January after stronger-than-expected inflation data, signs of labor shortage and higher commodity prices this week raised bets the Federal Reserve would have to pare back its crisis level support.
The three main U.S. stock indexes snapped a three-day losing streak on Thursday after better-than-expected weekly jobless claims data.
“The belief is that inflation will become more persistent, and it leaves the Fed behind the curve,” said Rob Sechan, co-founder of NewEdge Wealth in New York.
“As we get more broad-based in terms of the reopening, there is going to be more consensus around what is today’s uncertainties, and market reaction will become more predictable and less volatile.”
In signs that life was returning to normal, revised guidance from the U.S. Centers for Disease Control and Prevention said fully vaccinated people do not need to wear masks outdoors and can avoid wearing them indoors in most places.
At 8:42 a.m. ET, Dow e-minis were up 101 points, or 0.3%, S&P 500 e-minis were up 20.25 points, or 0.49% and Nasdaq 100 e-minis were up 113.5 points, or 0.87%.
Large-cap growth stocks, that were beaten down this week on concerns over their lofty valuations, led gains in early trading with Apple Inc, Amazon.com Inc and Microsoft Corp gaining about 1% each and Tesla Inc adding 2.4%.
Disappointing subscriber additions for Walt Disney Co’s namesake streaming service overshadowed better-than-expected overall profits, driving down shares of the entertainment company by 4.2%.
Airbnb Inc fell 0.9% despite beating analysts’ expectations for first-quarter gross bookings and revenue.
General Mills Inc slipped on a deal to buy Tyson Foods Inc’s pet treats business for $1.2 billion in cash, as the cereal maker builds its pet food portfolio.
Tyson shares added 0.5%.
(Reporting by Medha Singh and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)