* Yellen expects Fed to hike rates later this year
* Bank stocks rise on Yellen comments
* Q2 GDP revised upwards to 3.9 pct from 3.7 pct
* Nike jumps after quarterly profit beats estimates
* Futures up: Dow 229 pts, S&P 25 pts, Nasdaq 56 pts (Adds details, comment, updates prices)
By Tanya Agrawal
Sept 25 (Reuters) - Wall Street was set to open higher on Friday, a day after Federal Reserve Chair Janet Yellen said she expects the central bank to raise interest rates this year, easing concerns about slowing global growth.
Markets have been skittish since Thursday last week, when Yellen cited concerns about slowing growth as a key reason for holding off from a much-anticipated hike. Since then, the S&P had fallen about 3 percent through Thursday’s close.
Yellen said she and other policymakers do not expect recent global economic and financial market developments to significantly affect the central bank’s policy.
“There is some optimism after Yellen’s speech,” said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.
“She has raised the prospect of a December rate hike pretty high because the issues the Fed listed at its last meeting for not raising aren’t going to go away in the next six weeks.”
Federal fund futures contracts showed traders were pricing in more than a 50 percent chance of a rate hike by the end of this year.
Adding to the positive sentiment, data on Friday showed that the U.S. economy expanded more than previously estimated in the second quarter on stronger construction and consumer spending.
Gross domestic product rose at a 3.9 percent annual pace in the April-June quarter, up from the 3.7-percent pace reported last month.
S&P 500 e-minis were up 24.5 points, or 1.28 percent, with 365,981 contracts traded at 8:33 a.m. ET (1233 GMT).
Nasdaq 100 e-minis were up 55.5 points, or 1.31 percent, on volume of 58,781 contracts. Dow e-minis were up 229 points, or 1.42 percent, with 61,126 contracts changing hands.
Bank stocks rose after Yellen’s comments. Shares of Bank of America, JPMorgan, Citigroup and Wells Fargo were up between 1.6 percent and 2.0 percent premarket.
Nike jumped 8.3 percent to $124.32 after the world’s largest sportswear maker’s quarterly profit topped expectations on surprisingly strong growth in China.
Apple was up 1.1 percent at $116.28 as its new iPhones go on sale globally on Friday.
Intel rose 1.5 percent to $28.92 after JMP Securities upgraded the stock to “market perform”.
Consumer sentiment is expected to rise to 86.7 in September, compared with the preliminary reading of 85.7. The data is expected at 10 a.m. (Reporting by Tanya Agrawal, Additional reporting by Abhiram Nandakumar; Editing by Savio D‘Souza)