NEW YORK, Oct 6 (Reuters) - U.S. stock index futures were higher early Monday, indicating Friday’s rally could continue as investors grow more confident in the economy’s strength and Federal Reserve policy.
* The S&P 500 stock index posted its best day since August on Friday, lifted by a stronger-than-expected jobs report that boosted optimism about the economy, though the Federal Reserve was not seen as speeding up its timeline for raising interest rates.
* As of Friday’s close, the S&P 500 was about 2.2 percent away from its record close. The Russell 2000 was down 8.6 percent from its record. Last week, the small-cap index fell more than 10 percent from its peak, putting the index into correction territory, raising concerns the weakness could spread to the broader market.
* The S&P 500 had fallen 4.6 percent from its record intraday high to its recent intraday low. While the decline is less than half of the 10 percent drop that indicates a correction, which the benchmark index hasn’t undergone since 2012, it fell under its 150-day moving average for the first time since November 2012. While it subsequently rebounded back above that level, it remains under its 50-day average, and that level could serve as resistance against further gains.
* Market volatility has been higher of late, with equities notching big swings amid unrest in Hong Kong and concerns about Ebola in the United States. Those issues could continue to drive trading. The CBOE Volatility index ended Friday at 14.55, well below its long-term average of 20.
* Investors are looking ahead to the start of the U.S. earnings season, which will give a better sense as to how corporations are faring in the current environment. Alcoa Inc , Costco Wholesale Corp and Monsanto Co are all scheduled to report this week, though the season begins in earnest next week.
U.S. stock futures snapshot at 6:43 am ET (1043 GMT):
* S&P 500 e-minis were up 5.25 points, or 0.27 percent, with 128,969 contracts changing hands.
* Nasdaq 100 e-minis were gaining 11 points, or 0.27 percent, in volume of 20,003 contracts.
* Dow e-minis were up 47 points, or 0.28 percent, with 21,840 contracts changing hands.