U.S. stock futures pointed to a stronger start for Wall Street on Friday, with equities set to rebound after falling sharply in the previous session.

U.S. stocks plunged 9 percent in the last two hours of trading on Thursday before clawing back some of the losses as a suspected trading glitch and fears of a new credit crunch in Europe threw markets into disarray.

The Dow suffered its biggest ever intraday point drop -- 998.5 points. The market's fall may have been exacerbated by an erroneous trades that showed some shares briefly fell to nearly zero. The Nasdaq and others said they would cancel multiple erroneous trades.

Citigroup Inc said it was investigating a rumor that one of its traders entered the trade, a spokesman for the bank said on Thursday. Citigroup, the third-largest U.S. bank, said it has no evidence that an erroneous trade has been made.

Shares of Citigroup fell 1.5 percent to $3.98 in extended trading on Thursday, after dropping 3.4 percent in the regular session.

Investors will eye April's U.S. non-farm payrolls data, with economists polled by Reuters expecting the numbers to show that employers added 200,000 jobs in April after a 162,000 increase in the previous month. Unemployment is set to hold steady at 9.7 percent. The report is due at 8:30 a.m. EST.

The payrolls numbers, however, could be slightly weaker than the average forecast of a 200,000 gain in jobs, according to the median projection of the 20 most accurate economists in recent Reuters polls.

Shares of Kraft Foods Inc fell 0.7 percent to $29 in extended trading on Thursday after the company reported its first-quarter results.

European equities plunged to a three-month low in early trade on Friday, before recouping some losses with mounting concerns about a severe debt crisis in the euro zone forcing investors to dump equities.

Treasury Secretary Timothy Geithner will discuss efforts to get aid to debt-stricken Greece with fellow finance ministers from Group of Seven nations on Friday, a Treasury spokesman said.

German lawmakers in the Bundestag lower house of parliament began debating a draft law on Friday on Germany's contribution to an aid package for Greece.

American International Group (AIG) posts quarterly results on Friday, with analysts expecting the world's biggest insurer to post earnings per share of $0.48 from a loss per share of $19.40 in the same quarter a year ago.

AIG's board, anticipating a $51 billion windfall from two huge deals, has formed a special committee to explore ways to pay back the U.S. government, a source familiar with the matter said.

Other companies to report earnings include the Washington Post, CF Industries, Edison International, Pepco Holdings and PG&E Corporation.

The Dow Jones industrial average <.DJI> dropped 347.80 points, or 3.20 percent, to 10,520.32. The Standard & Poor's 500 Index <.SPX> fell 37.75 points, or 3.24 percent, to 1,128.15. The Nasdaq Composite Index <.IXIC> lost 82.65 points, or 3.44 percent, to 2,319.64.

(Reporting by Harpreet Bhal; Editing by Jon Loades-Carter)