Dow industrials futures YM00, +0.49% were pointing up around 160 points, set for a strong open to continue gains after the index rallied 433 points on Thursday to close at 34,021.

European equities are rebounding from days of declines since the beginning of the week, largely driven by U.S. inflation fears, with the Stoxx 600 now just 1.5% below the record high hit on Monday, before the selloff. 

Wall Street enjoyed a strong rebound on Thursday, reversing a near 4% fall on the S&P 500 SPX, +1.22% index over the week, and Asian and European stocks are playing catch-up.

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“Technology stocks remain under pressure, but investors are turning to value stocks, which helped the broader market to recover,” said Milan Cutkovic, an analyst at Axi. “The fact that Europe’s stock indices are not dominated by technology stocks turned out to be an advantage in the current market environment.”

In the day ahead, investors will closely watch U.S. retail sales figures for April, which will provide more insight into consumer spending as the world’s largest economy reopens. In Europe, the European Central Bank will release the minutes from its April meeting.

Accompanying the rally in stocks was a fall in commodity prices late on Thursday. Benchmark Brent BRN00, +1.31% crude remains down around 4% from Wednesday, from near $70, hovering around $67. Copper futures HG00, -0.77% were down near 1% and iron ore futures TIOK21, -1.47% slipped 2.5%.

The London-listed mining giants added drag to the FTSE 100, with nonenergy minerals the weakest sector in the CAC 40 as well. Shares in Rio Tinto RIO, -1.97%, Glencore GLEN, -0.12%, Anglo American AAL, +0.29%, BHP BHP, -1.29%, and Antofagasta ANTO, -1.68% fell.

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Shares in U.K. enterprise software group Sage SGE, +3.11% rose 3%, after it posted half-year results with earnings-per-share ahead of analyst expectations. The group also guided that its margins would trend upward beyond 2021.

Sportswear giant Adidas ADS, +0.56% was a standout in Germany, with the stock up 1.5%. The New York Post reported on Thursday that Authentic Brands and Wolverine World Wide — the footwear group behind Merrell and Hush Puppies — had made an offer of more than $1 billion to buy Reebok.

Shares in Sanne SNN, +21.06%, a U.K. asset management services group and constituent of the midcap FTSE 250 MCX, +0.75% index, soared 26% higher after its board rejected a £1.35 billion buyout proposal from private-equity group Cinven.

European food-delivery group Delivery Hero DHER, -2.30% saw its stock slide 3%, days after announcing that it would re-enter its competitive home market of Germany in June. Delivery Hero sold its German operations to rival Just Eat Takeaway TKWY, -0.79% two years ago.

Shares in French foods group Danone BN, -1.82% slipped near 2%, after investment bank Goldman Sachs GS, +1.24% downgraded the stock to sell.