U.S. stock futures edge higher after 372-point Dow rally with bank health in the spotlight

What’s driving markets

Toward the end of Thursday’s session, major banks including JPMorgan, Citigroup, Bank of America and Wells Fargo agreed to plunk $30 billion of uninsured deposits into First Republic Bank FRC, +9.98%. That came as the Federal Reserve reported a combined $165 billion of borrowing, mostly through its discount window but also the new facility where bonds trading at a discount can be used as collateral, at par value.

Shares of First Republic may still see pressure after the lender announced it will suspend its dividend.

There’s also the issue of Credit Suisse CS, , the massive Swiss lender that has turned to its central bank for liquidity. Credit Suisse shares CSGN, -3.64% slipped 5% in Zurich trade on Friday.

Ahead of next week’s Fed rate decision, there will be data on industrial production and consumer sentiment set for release.

“The decision for central banks is whether to target inflation or financial stability. We think they have more inflation fighting to do,” say strategists at Citi, who say gold can perform well across a range of outcomes, such as a global financial crisis or one focused to either the U.S. or Europe.