Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 20, 2025. REUTERS/Brendan McDermid

By Shashwat Chauhan and Pranav Kashyap

(Reuters) -Wall Street's main indexes were set for a higher open on Friday as traders ramped up bets on a December interest rate cut by the Federal Reserve following commentary from policymakers, with tech stocks stabilizing after last session's rout.

New York Fed President John Williams - a voting member of the Federal Open Market Committee - said the central bank can still cut interest rates "in the near term" without putting its inflation goal at risk.

Traders now see a more than 70% chance that the Fed will cut its main lending rate by 25-basis-points in December, up from a near 37% chance seen earlier in the day, according to the CME FedWatch Tool.

"There's still expectations for the rate cutting cycle to continue, whether it's in December or it's early next year," said John Campbell, head of systematic core equity team at Allspring Global Investments.

"There could be some volatility around December's cut, but the rate cutting cycle will probably still continue into next year."

At-least four more Fed officials are slated to speak throughout the day.

Most megacap and growth stocks were higher in premarket trading, with Alphabet leading gains with a 2% rise.

Nvidia shares were last up 0.6% after a volatile session on Thursday when they swung as much as 5% higher before closing 3.2% down.

The world's most valuable company surpassed third-quarter revenue expectations and forecast fourth-quarter sales above analysts' estimate late on Wednesday, while its CEO dismissed concerns about an AI bubble.

"Valuations have gotten stretched and some investors have been keeping their eye on the exit. Expectations have gotten very high for the AI theme," Campbell added.

As of last close, all three main indexes were on track for their worst weekly drop since March. Consumer discretionary and information technology sectors are set for a more than 4% drop this week.

The Nasdaq has retreated sharply from its October peak and is poised for a steep decline in November amid skepticism over tech monetization prospects, circular spending within the sector and rising debt issuance.

At 8:33 a.m. ET, Dow E-minis were up 216 points, or 0.47%, S&P 500 E-minis were up 26.5 points, or 0.4% and Nasdaq 100 E-minis were up 76.25 points, or 0.32%.

Meanwhile, global brokerages were divided over the likelihood of a December rate cut after Thursday's release of the long-delayed September jobs report, which marks the last employment reading before the Fed's verdict next month.

The Bureau of Labor Statistics plans to skip its October update and instead combine October and November nonfarm payroll data in a single report due mid-December.

Meanwhile, attention would be on November business activity and consumer sentiment data, due shortly after the markets open on Friday.

Gap gained 7.1% after the apparel maker beat third-quarter comparable sales and profit estimates.

Intuit gained 4% after the financial management tools company forecast second-quarter revenue growth above market expectations.

(Reporting by Shashwat Chauhan and Pranav Kashyap in Bengaluru; Editing by Shilpi Majumdar and Maju Samuel)