Wall Street was set to open higher on Friday as investors digested the possibility of a June rate hike, a day after the S&P 500 fell to its lowest in two months.

Oil prices were marginally lower as investors cashed in recent gains and focus shifted again to global oversupply. 

A strengthening labor market and rising inflation could encourage the U.S. Federal Reserve to further tighten monetary policy.

New York Fed President William Dudley said on Thursday the U.S. economy was strong enough to warrant a rate hike in June or July.

"We got rattled earlier this week by shifting Fed perception," said Scott Brown, Chief Economist at Raymond James in St. Petersburg, Florida. "Now we're back to looking at two rates increases this year, maybe even three."

The S&P 500 has fallen 4.4% since it hit a record high on May 21 last year.

The benchmark index has given up all its gains for the year due to underwhelming corporate earnings, mixed economic data and uncertainty regarding the trajectory of rate hikes.

The S&P and Dow were on track to post their fourth straight week of losses, while the Nasdaq was worse off, heading for its fifth straight weekly loss.

S&P 500 e-minis were up 4.75 points, or 0.23 percent, with 189,838 contracts traded at 8:38 a.m. ET, Nasdaq 100 e-minis  were up 15 points, or 0.35%, on volume of 25,711 contracts. Dow e-minis were up 44 points, or 0.25%, with 26,978 contracts changing hands.

Existing home sales in the United States are expected to have risen 1.3% in April. The data is due at 10:00 a.m. ET.

InterOil  jumped 24.5% to $40.98 after Oil SearcH agreed to buy the company for $2.2 billion.

Yahoo fell 5.1% to $35.13 after the Wall Street Journal reported that Verizon and others were planning a $2 billion-$3 billion bid for the company's core business.

Campbell Soup fell 4% to $61.41 after the company reported lower-than-expected quarterly sales.