Traders consider bank troubles and the Fed's decision as they weigh Dow futures

Several Dow Jones Industrial Average futures were slightly higher in the morning of Friday as investors' attention was shifted back to the United States banking system as investors focused on this week's Federal Reserve meeting.

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Adding to the day's gains, Dow Jones futures climbed 31 points, trading near the flatline in the closing minutes. Nasdaq-100 futures climbed 0.06% while S&P 500 futures edged up.

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There are several reasons for the extended-hour moves, including the drop in the three major indexes as a result of Wednesday's volatile session. There was a 1% gain for the Nasdaq Composite as technology shares continued to rally on a hunch that interest rate hikes would eventually end as investors became less concerned about the rising interest rate environment. During the week, the stock market rose by approximately 0.3%, and the Dow Jones rose by approximately 0.2%. This means that there is a good chance of all three indexes finishing up this week.

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The market continued to react positively to Wednesday's announcement by the Federal Reserve that it would raise interest rates by a quarter percentage point in the near future. A statement from the central bank also hinted at an end to the interest rate hikes, which have been meant to cool inflation in the past couple of months.

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According to Treasury Secretary Janet Yellen, regulators are prepared to take more measures if necessary to stabilize U.S. banks, which weighed on investor sentiment during the session, with SPDR S&P Bank ETF (KBE) operating at a 2.5% loss. In the wake of the closures of Silicon Valley Bank and Signature Bank, she has made a series of remarks that she believes will help boost confidence in the banking system in the United States.

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As a result of prices stabilizing, investors are able to assess whether they are in a better financially stable position or not. "This is the primary cause of market volatility," said Tom Hainlin, national investment strategist at the U.S. Bank Wealth Management. The Fed, according to Hainlin, has the mandate to try and contain inflation while also limiting the effects that ongoing rate hikes can have on capital market activity as a result of the mounting pressure on inflation.

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The markets will be paying close attention to the economic data coming out on durable goods, manufacturing, and services on Friday morning. On Friday, when the market opens at 10 a.m. EST (approximately 8:30 a.m., GMT), St. Louis Fed President James Bullard will be giving a speech.