E-mini futures for the Dow, Nasdaq and S&P 500 all pointed higher at 7:25 a.m. ET, after news emerged that the U.K.'s snap election had ended in a hung parliament.
With U.K. Prime Minister Theresa May having called for an election earlier this year, her party, the Conservatives, had expected to strengthen their hand in the June 8 election, but have ended up losing a number of seats in parliament, meaning the election has shown no clear majority.
Since no party secured an outright majority, Britain is facing a hung parliament. That means multiple parties have to work together to hammer out a coalition government. This can also delay, or hurt, upcoming Brexit negotiations, as well as affect May's political future.
Those results sank the pound to a Friday session low of $1.2632. At 7:26 a.m. New York time, sterling traded at $1.2766, down 1.43 percent against the greenback. In markets, European bourses including the U.K.'s FTSE 100 were posting solid gains, however, the pan-European STOXX 600 was under slight pressure along with many sectors.
In Asia, trade finished mostly higher as investors paid close attention to the election result.
While British politics is set to dominate on Friday, investors will also be paying close attention to news out of the White House as well as keeping an eye on moves in the energy space.
On Thursday, U.S. markets closed mostly higher as Wall Street digested the former FBI Director James Comey's testimony. Investors had been paying close attention to the testimony, to see if Comey's remarks would be damaging for U.S. President Donald Trump.
In his testimony, Comey said he kept records of his conversations with Trump — something he did not do when Barack Obama was president — because he thought Trump might "lie."
In commodities, oil futures edged higher in morning trade, yet concerns of a possible glut in the market weighed on sentiment. At 7:27 a.m. ET, U.S. crude and Brent were trading higher, reaching at $45.71 and $47.88, respectively.
In data news, wholesale trade is slated to come out at 10 a.m. ET.
—CNBC's Sam Meredith and Fred Imbert contributed to this report.