US Markets

Futures extend gains, tripling on jobs report

How will Fed react to jobs data?

U.S. stock index futures indicated a higher open on Friday as investors digested the April jobs report.

The Dow futures tripled from about 50 points to as much as 191 points on the jobs report, which was in-line with expectations. (Tweet This) Bond yields edged lower, with the 10-year falling as low as 2.12 percent.

"Probably best scenario in which the market was hoping for growth but not (so strong) that the Fed needs to hike in June," said Ryan Larson, head of U.S. equity management at RBC Global Asset Management (U.S.).

He noted that the economy remains on a moderate growth track, with a downward revision to March's disappointing report for the weakest figure since June 2012.

April's jobs report showed a creation of 223,000 jobs and an unemployment rate of 5.4 percent. Average hourly earnings increased 0.1 percent, a touch below expectations of 0.2 percent.

Peter Boockvar, chief market analyst at The Lindsey Group, said the muted gains in wages that would likely push out a rate hike were the primary driver for the jump in stock futures.

Analysts polled by Reuters expect the nonfarm payrolls report to show the creation of 224,000 jobs in April, with unemployment lower at 5.4 percent.

Art Hogan, chief market strategist at Wunderlich Securities, said that "markets can stabilize here" until the next employment report as growth in the second quarter continues to show signs of slight improvement.

"9 out of 10 for April's activity have been better than March," he said. " We're heading in the right direction and that should be bullish. We'll still have just a sigh of relief from jobless numbers that did no harm."

A trader works on the floor of the New York Stock Exchange.
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Wholesale trade data is due at 10:00 a.m. ET.

European shares were higher on Friday, led by the FTSE 100 which surged on a more decisive-than-expected U.K. election outcome.

Read MoreUK election: Now what? Scottish surge and 'Brexit'

Risk assets in the U.K. saw stellar gains with the news that the Conservative Party is edging towards leading the country's government for the next five years, with banking stocks the main outperformers.

Sterling also rallied, jumping over 1 percent to trade at 1.5447 against the dollar.

Government bond yields also eased back from highs seen on Thursday, with the U.S. 10-year Treasury trading around 2.1512 percent, while the German 10-year Bund yields held near 0.58 percent after nearly hitting 0.8 percent.

Major earnings due on Friday include AOL, BioCryst Pharma and Crocs.

AOL reported adjusted quarterly profit of 34 cents per share, two cents above estimates, while revenue was well above forecasts. AOL's results were driven by strength in video, mobile, and programmatic advertising.

Bojangles priced its initial public offering at $19 per share, above the expected range, giving the company a $680 million value. The restaurant chain will begin trading today on Nasdaq.

Salesforce stock is on watch again today, with Reuters reporting that Microsoft is not considering a bid for the business software maker. Reports earlier this week said Microsoft was considering an offer for Salesforce.

RBC initiated coverage Whirlpool with an "outperform" rating, calling the appliance maker an exceptionally well-managed company that will benefit from a favorable competitive environment in North America.

Read More Early movers: AOL, WHR, PM, CBS, NOK & more

Oil held near lower levels on Friday, as concerns over oversupply outweighed strong Chinese import figures.

Benchmark Brent crude was at $65.76 per barrel, while U.S. crude traded near $59 a barrel.

CNBC's Peter Schacknow contributed to this report.