Geopolitics are likely to dominate markets Friday, with traders sensitive to even the small developments ahead of the weekend.
After trading lower overnight, stock futures turned higher in the 7 a.m. ET hour, after a news report quoting a Russian official saying Russia is seeking to de-escalate the Ukraine conflict. European stock markets came off their lows.
"We saw a comment yesterday that was along the same line," said Peter Boockvar, chief market strategist at Lindsey Group. "This is kind of repeat of that. We've been following Europe the last couple of days. Just as Europe bounced back, we followed."
Bond yields moved higher, with the 10-year yield at 2.39 percent but still below Thursday's close. The German bund set a new low yield Friday and was at 1.05 percent.
Stocks wobbled Thursday, but took clear hits after several headlines, including reports that the U.S. was weighing airstrikes and humanitarian aid to help Iraqis trapped on a mountaintop by rebels. Bonds rallied, the euro slid against the dollar and gold firmed.