US pre-open: Stocks seen mostly higher after Thursday's selloff; UPS and FedEx slide

US futures pointed to a mostly higher open on Wall Street on Friday following another sharp selloff the day before.

At 1230 GMT, Dow Jones Industrial Average futures were down 0.1%, while S&P 500 and Nasdaq futures were 0.1% and 0.2% firmer, respectively. On Thursday, stocks in the US tumbled again as worries about rising inflation and higher interest rates continued to plague investors. The Dow ended down 1,033 points, while the S&P 500 fell 101 points and the Nasdaq sank 275 points.

Oanda analyst Craig Erlam said: "As we saw on Thursday, this isn’t necessarily indicative of calm returning to the markets. The Dow recorded declines of more than 1,000 points for the second time this week, having never done so before, despite futures prior to the open being relatively unchanged on the previous days close.

"Clearly there remains a lot of volatility and nervousness in the markets and I don’t expect this to ease up heading into the weekend. Stock markets will likely remain vulnerable to further shocks heading into today’s close and possible even next week. That said, with a 10% correction having now completed, I wonder whether investors will now start looking to buy the dips as the fundamental backdrop remains strong."

Investors will also be digesting news that US lawmakers voted to pass a two-year budget that will boost spending by $300bn. The US government officially shut down for the second time this year earlier as Congress had failed to meet the midnight on Thursday deadline to vote on the new budget. However, with the measures now passed by both the Senate and the House, the shutdown could end before the working day begins.

Erlam said: "Markets haven’t been too concerned about the prospect of a shutdown since the start of the year despite two having now taken place so I don’t expect to see any boost now that a deal has been reached. This is merely just another self-inflicted risk that’s been temporarily averted."

In corporate news, FedEx and UPS took a beating in pre-market trade following reports that Amazon is preparing to launch a delivery service for businesses that would pit it against the two companies.

Teva Pharmaceuticals fell sharply in pre-market trade after it warned that 2018 results would be weaker-than-expected this year despite aggressive cost-cutting.

Sharpie pens maker Newell Brands was likely to be in focus after saying that activist investors Starboard Value LP and Opportunity Master Fund were looking to nominate 10 directors to its board.

Elsewhere, shares in GrubHub looked set to advance after it announced a partnership with Yum Brands a day earlier.

On the data front, wholesale inventories are at 1500 GMT.