Dow Futures Rise Amid Caution As Wall Street Traders Eye May Jobs Report - Strategist Warns Euphoric Stock Traders Ignoring Bond Market Signals

U.S. stock futures treaded water early Friday as traders looked ahead to the all-important May non-farm payrolls report, especially after the recent string of weak labor market readings. 

The market is also left to contend with President Donald Trump's social media ramblings that have stirred volatility. Traders are also glued to how the war of words between the president and Tesla (TSLA) CEO Elon Musk plays out. Tesla slumped over 14% on Thursday as the two exchanged tirades over the billionaire's opposition to the Trump administration's tax bill.

Earnings from high-profile chip maker Broadcom (AVGO) elicited negative stock reaction, portending a potential hit to the sector in Friday's session.

As of 12:07 a.m. ET on Friday, the Dow and the S & P 500 futures rose 0.27% and 0.21%, respectively, while the Nasdaq 100 futures were up 0.09%.

Futures tied to the Russell 2000 Index were up a steeper 0.50%.

Crude oil futures held above the $63-a-barrel level despite the modest drop in overnight trading, while gold futures rose moderately. The 10-year U.S. Treasury yield remained under 4.4%. 

The Asian market traded mixed.

The May monthly jobs data, due at 8:30 a.m. ET, is expected to show job gains of 125,000, slower than the 177,000 additions in the previous month. The jobless rate is expected to remain stuck at 4.2%, and the annual rate of hourly wages may have slowed slightly to 3.7% from 3.8%.

Federal Reserve Governor Michelle Bowman is due to speak at 10 a.m. ET.

The Fed's consumer credit report is scheduled for 3 p.m. ET.

The earnings calendar for the day includes reports from ABM Industries (ABM) and G-III Apparel (GIII).

Morgan Stanley Chief Investment Strategist Lisa Shalett said the rise in bond yields across the globe signals caution despite equity investors sending stocks higher on hopes of Magnificent Seven artificial intelligence (AI) domination and the possibility of manageable tariff levels.

According to the strategist, the bond yield spike reflected concerns about the ongoing tariff uncertainty, the growing government debt pile that could rise further in the wake of President Trump's tax bill, and the shift to a“multipolar” world.

On Thursday, stocks came under pressure after the Musk-Trump exchanges weighed down heavily on the consumer discretionary sector.  All but the consumer staple S & P 500 sector class, closed in the red.

Market participants also took note of a weak jobless claims report, which showed the number of individuals claiming unemployment benefits spiked to a seven-month high. The Beige Book report showed anecdotal evidence indicating mixed business activity and firms delaying hiring amid the trade policy uncertainty.

The Invesco QQQ Trust (QQQ) ETF and the SPDR S & P 500 ETF (SPY) fell 0.75% and 0.48%, respectively.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) lost 0.23% while the iShares Russell 2000 ETF (IWM) added 0.04%.

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