Wall Street set to add to Fed-driven rally

By Abhiram Nandakumar

(Reuters) - Wall Street was set to add to a rally that pushed the Dow Jones industrial average into positive territory for 2016, as the Fed's tempered view on interest rates, a weakened dollar and rising oil prices whetted investors' risk appetite.

Crude oil rebounded to fresh 2016 highs on strong seasonal demand and hopes that major oil producers would reach a deal to freeze output.

U.S. stock index futures also got a boost from contracts set to expire on Friday.

"There's been some nervousness taken out of the market by the Fed making their comments," said Gary Bradshaw, a portfolio manager with Hodges Funds in Dallas.

"All in all, I think it's setting up for a very good day."

At 8:31 a.m. ET (1231 GMT), Dow e-minis were up 48 points, or 0.28 percent, with 23,147 contracts changing hands. S&P 500 e-minis were up 5.75 points, or 0.28 percent, with 211,493 contracts traded. Nasdaq 100 e-minis were up 10.5 points, or 0.24 percent, on 21,590 contracts.

Wall Street drifted higher on Thursday, bringing the S&P 500 within shouting distance of a gain for 2016, as energy and materials stocks rose. The Dow closed up 0.324 percent for 2016.

With the Fed being cautious over rate hikes, investors will now keep a close eye on global economic and financial market conditions to gauge the impact of overseas weakness on U.S. economy and earnings growth.

U.S. data on Friday includes a preliminary reading of the University of Michigan's consumer sentiment index, which is expected at 92.2 for March, improving from a final reading of 91.7 last month. The report is due at 10 a.m. ET (1400 GMT).

New York Fed President William Dudley, Boston Fed President Eric Rosengren and St. Louis Fed chief James Bullard, FOMC voting members, are scheduled to speak at separate events through the day.

Shares of Adobe were up 7 percent at $96.30 premarket after the Photoshop maker raised its full-year profit and revenue forecasts above expectations.

Bank of America and JPMorgan were up more than 1 percent after they announced share buyback programs.

Wynn Resorts rose 3 percent to $91.45 after Deutsche Bank raised its price target on the stock.

Columbia Pipeline was up 6.3 percent at $24.96 after TransCanada said it would buy the company for $10.2 billion.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Don Sebastian)