U.S. stock index futures rose on Friday, with shares set to rebound after a steep fall in the previous session and ahead of a report expected to show the U.S. economy added more jobs last month.

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

Investors will eye April's U.S. non-farm payrolls data, with economists polled by Reuters expecting employers added 200,000 jobs last month after a 162,000 increase in March. Unemployment is seen holding steady at 9.7 percent. The report is due at 8:30 a.m. EDT.

The focus will be on stronger-than-expected-economic data, a strong earnings growth rate and the chance that three straight sessions of declines may have taken the market to an oversold position, said Art Hogan, chief market analyst at Jefferies & Co in Boston.

I think at the open we'll probably see bargain hunters overpowering the panic sellers, and I think that's what's being reflected in futures right now, he said.

S&P 500 futures rose 8.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 61 points, and Nasdaq 100 futures added 16.75 points.

The S&P 500's 14-day relative strength index is at its lowest since late January, just before the 11-week run-up from early February to late April. The figure stands at 33.4, down from the overbought 70.8 level just two weeks ago. An RSI below 30 indicates the index may be oversold.

The German government's lower house of parliament approved a law to free up Germany's contribution to a multi-billion rescue package for Greece, despite widespread public opposition to the measure.

European stocks fell to a three-month low in early trade on Friday on mounting concerns the severe debt crisis may spread to other euro zone countries. The MSCI world equity index <.MIWD00000PUS> fell 0.8 percent.

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

Shares of Goldman Sachs Group Inc rose 1.9 percent to $145 in premarket trading after the Wall Street Journal reported the company was in settlement talks with the Securities and Exchange Commission over fraud charges.

American International Group Inc shares rose 3 percent to $39.85 in premarket trading after the bailed-out insurer posted a first-quarter profit, reversing a year-earlier loss as its investment portfolio gained in value.

Pepco Holdings Inc and CF Industries Holdings Inc reported earnings early Friday. Washington Post Co , Edison International , and PG&E Corp are expected to report later in the day.

Hong Kong and Shanghai shares overnight closed out their worst week in months, weighed down by the global flight from riskier assets and tightening measures in China to rein in inflation. <.SS>

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

(Editing by Padraic Cassidy)