The major U.S. index futures are currently pointing to a lower open on Friday, with stocks likely to give back ground following the substantial rally seen in the previous session.

Traders may look to cash in on some of the recent strength in the markets, which saw the Nasdaq and the S&P 500 close higher for six consecutive sessions.

The recent upward trend has seen the major averages largely offset the sell-off seen early this month, although they remain well off the record highs set in July.

Selling pressure is likely to remain somewhat subdued, however, as recent economic data has eased concerns about the economic outlook while also increasing confidence the Federal Reserve will cut interest rates next month.

While yesterday’s upbeat retail sales data has reduced the likelihood of a 50 basis point rate cut, the Fed is still widely expected to cut rates by at least 25 basis points.

After trending higher over the past several sessions, stocks showed another significant move to the upside during trading on Thursday. The major averages all posted strong gains, with the Nasdaq and the S&P 500 extending their winning streaks to six days.

The major averages pulled back off their best levels going into the close but remained sharply higher. The Nasdaq soared 401.89 points or 2.3 percent to 17,594.50, the S&P 500 surged 88.01 points or 1.6 percent to 5,543.22 and the Dow jumped 554.67 points or 1.4 percent to 40,563.06.

The rally on Wall Street came as the Commerce Department released a report showing much stronger than expected retail sales growth in July, easing concerns about the economic outlook.

The Commerce Department said retail sales jumped by 1.0 percent in July after edging down by a revised 0.2 percent in June.

Economists had expected retail sales to rise by 0.3 percent compared to the unchanged reading originally reported for the previous month.

Excluding a surge in sales by motor vehicle and parts dealers, retail sales still rose by 0.4 percent in July after climbing by 0.8 percent in June. Ex-auto sales were expected to inch up by 0.1 percent.

Shares of Walmart (NYSE:WMT) also moved sharply higher after the retail giant reported fiscal second quarter results that exceeded analyst estimates and raised its full-year guidance.

Positive sentiment was also generated in reaction to a Labor Department report showing an unexpected decline by first-time claims for U.S. unemployment benefits in the week ended August 10th.

The Labor Department said initial jobless claims fell to 227,000, a decrease of 7,000 from the previous week’s revised level of 234,000.

Economists had expected jobless claims to inch up to 235,000 from the 233,000 originally reported for the previous week.

“If the economy continues to be resilient – especially in conjunction with slowing inflation – then the Fed can begin a rate cutting cycle without the economy entering recession and history shows this is an extremely positive environment for the stock market,” said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.

Meanwhile, traders largely shrugged off a report from the Federal Reserve showing industrial production in the U.S. fell by much more than expected in the month of July.

The report said industrial production decreased by 0.6 percent in July after rising by a downwardly revised 0.3 percent in June.

Economists had expected industrial production to dip by 0.3 percent compared to the 0.6 percent increase originally reported for the previous month.

Semiconductor stocks saw substantial strength on the day, resulting in a 4.9 percent spike by the Philadelphia Semiconductor Index.

Significant strength was also visible among airline stocks, with the NYSE Arca Airline Index soaring by 4.4 percent.

Networking stocks also moved sharply higher, as reflected by the 3.5 percent surge by the NYSE Arca Networking Index.

Cisco Systems (NASDAQ:CSCO) led the sector higher after reporting better than expected fiscal fourth quarter results and announcing plans to lay off 7 percent of its workforce.

Computer hardware, retail and oil service stocks also saw considerable strength amid broad based buying interest on Wall Street.