* Futures: Dow up 0.14%, S&P down 0.38%, Nasdaq down

0.88%

* Semiconductors slide after strong rally

* May payrolls data due at 8:30 am ET

* S&P Global to not change index entry eligibility for

megacap IPOs

(Updates with prices)

By Medha Singh and Twesha Dikshit

June 5 (Reuters) - S&P 500 and Nasdaq futures fell on

Friday, as chipmakers lost steam following a strong rally and

investors stayed cautious ahead of the May employment report,

which could shape expectations for the Federal Reserve's policy

path.

Nvidia ( NVDA ), the largest company by market value, fell

1.2%, while Intel ( INTC ), Micron, AMD and

Broadcom ( AVGO ) dropped between 1.2% and 2.5% in premarket

trading.

Gains in semiconductor stocks were instrumental in Wall

Street's recovery from March lows to record highs. A temporary

ceasefire in the Middle East and strong earnings growth also

supported the gains.

"Momentum in AI/Semis feels more shaky," Barclays strategist

Emmanuel Cau said, pointing to crowded positioning, looming

liquidity events from large IPOs and policy risks.

The spotlight will turn to the Labor Department's data at

8:30 a.m. ET, which is expected to show nonfarm payrolls rose by

85,000 jobs in May, after increasing 115,000 in April, according

to a Reuters survey of economists. The pace is likely consistent

with a stable labor market.

"So long as the labour market stays in decent shape, that

will keep the focus on the inflation side of the Fed's mandate,

which has moved increasingly above target given the energy

shock," Deutsche Bank strategist Jim Reid said in a note.

The data comes ahead of the new Federal Reserve Chair Kevin

Warsh's first policy meeting later this month, as he takes

charge of an economy grappling with elevated inflation, partly

exacerbated by the Middle East conflict, and a subdued labor

market, marked by layoffs and fewer hirings.

Money markets expect the central bank to keep rates

unchanged into next year.

Hezbollah rejected a new Lebanon ceasefire, while Israel

said it would keep troops in place, dealing a blow to U.S.

President Donald Trump's push to end the fighting and advance

talks with Tehran.

Citi said it was trimming equity exposure after a strong

run. It had taken a bullish call when the Middle East ceasefire

took hold in April. It flagged rising inflation and positioning

risks, while keeping a constructive longer-term view on U.S.

equities supported by AI-driven earnings.

At 06:41 a.m. ET, Dow E-minis were up 70 points, or

0.14%, S&P 500 E-minis were down 29.25 points, or 0.38%

and Nasdaq 100 E-minis were down 269 points, or 0.88%.

If losses hold through the session, the S&P 500 would

register its first weekly decline since April. The tech-heavy

Nasdaq was also set to end the week slightly lower, while the

price-weighted Dow was on track to rise for the third straight

week.

S&P Global said it would not change the eligibility

requirements for its major indices, which effectively rules out

a swift entry for Elon Musk's SpaceX to the benchmark S&P 500

after it goes public in what would be the world's biggest IPO.

Among other major moves, Lululemon Athletica ( LULU )

slumped nearly 12.5% after the athletic apparel maker cut its

annual profit forecast and projected second-quarter earnings

well below Wall Street estimates.

Cooper Companies ( COO ) rose 5.6% after the maker of

contact lenses beat estimates for second-quarter results.

Meanwhile, S&P Dow Jones Indices will announce the results

following its rebalancing after markets close. Chipmaker Marvell

Technology, which now boasts of more than $270 billion

in valuation, is among the contenders to be added to the

benchmark index.

(Reporting by Medha Singh and Twesha Dikshit in Bengaluru;

Editing by Shinjini Ganguli)