US futures extend gains on Chinese PM remarks

Global markets rally on Greek debt progress
Global markets rally on Greek debt progress   

U.S. stock index futures extended earlier gains on Friday after the Chinese Premiere Li Keqiang said the country's economy was stabilizing.

Dow futures rallied around 200 points in pre-market trade, with Wall Street also cheering renewed hopes for a Greek saga conclusion after Greek Prime minister Alexis Tsipras delivered a reform plan, which international creditors will review by Sunday—the "final" deadline for a deal being struck. No deal by then would increase the chances of Greece leaving the euro zone in a so-called Grexit.

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Traders work on the floor of the New York Stock Exchange.
Getty Images
Traders work on the floor of the New York Stock Exchange.

European stocks surged on Friday following Greece's submission of proposals. Germany's DAX was up around 2.4 percent, while the French CAC rallied more than 3 percent.

Apart from Greece, Federal Reserve Chair Janet Yellen will also speak on the economic outlook and take questions on Friday at 12:30 p.m. ET in Cleveland.

Traders will listen for any guidance on whether international risks are serious enough to deter the central bank from raising rates this year – the Fed, in the minutes from its June meeting, noted that it was watching events in Greece and was concerned about China's economy.

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Asian stock markets also ended Friday on a positive note, as the market rebound in China entered a second day and on the back of rising hopes for a deal between Greece and its creditors.

Back in the U.S., wholesale trade figures are due at 10:00 a.m. ET. There are no major earnings due on Friday

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Gap reported a 1 percent drop in June same-store sales, more than the Thomson Reuters estimate for a 0.5 percent drop.

Barracuda Networks beat estimates by 1 cent with adjusted quarterly profit of 9 cents per share, with revenue also above estimates. However, gross billings—a sign of future demand—were well below Street forecasts.

CNBC's Peter Schacknow contributed to this report.