(Reuters) - U.S. stock index futures were higher on Friday, signaling a pause from a week-long selloff triggered by fears over the economic impact of the Trump administration's erratic trade policies, while investors awaited a consumer confidence report later in the day.

Global financial markets witnessed significant volatility during the week, with the S&P 500 confirming a correction and losing more than $4 trillion in value.

Concerns are rife that U.S. President Donald Trump's unpredictable tariff threats could stall investment and tip the world's largest economy into a period of high inflation and slowing growth.

U.S. tariffs on metal imports were met with immediate retaliation from Canada and the European Union and Trump has also hinted at reciprocal tariffs in early April.

Some brokerages lowered their ratings on U.S. stocks and a number of companies cited economic uncertainty as they announced downbeat forecasts.

The S&P 500 confirmed a 10% drop in the previous session from its February 19 record closing high, a week after the tech-heavy Nasdaq also confirmed a correction.

All three indexes are on track for weekly declines, with the benchmark index set for its longest weekly losing streak in seven months. The blue-chip Dow is down about 9% from its recent record high.

At 05:39 a.m. ET, Dow E-minis were up 223 points, or 0.55%, S&P 500 E-minis were up 41.75 points, or 0.75% and Nasdaq 100 E-minis were up 188.5 points, or 0.98%.

The steep selloff has cooled valuations of U.S. stocks and analysts said various technical indicators show that equities are ripe for a recovery.

Megacaps and chip stocks, which bore the brunt of the selloff, rose in premarket trading. Meta added 1.6%, Nvidia rose 1.8%, Broadcom climbed 1.9% and Apple edged up 0.5%.

Apple-supplier Foxconn said solid demand from its tech clients would drive strong revenue growth in the first quarter.

Tesla rose 1.5% after a 3% slide on Thursday. A report said the automaker will make a lower-cost version of its best-selling Model Y in Shanghai, aiming to regain ground lost during a price war in its second-largest market.

The U.S. Senate was on the verge of passing a stopgap spending bill to avert a partial government shutdown after Democrats backed down in a standoff over President Donald Trump's campaign to slash the federal workforce.

On the data front, the University of Michigan's survey of consumer mood is expected at 10 a.m. ET, with price pressures being the main concern. Economists polled by Reuters expect the index to drop further to 63.1 from the 15-month low it hit in February.

The U.S. Federal Reserve's policy decision will be in the spotlight in the coming week, with traders betting that interest rates will be left unchanged, according to data compiled by LSEG. Markets will watch for clues on when the central bank could resume its monetary policy easing.

Crown Castle jumped 6.5% after it said it would sell its fiber assets to two entities for $8.5 billion, nudged by activist investor Elliott Investment Management.