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Futures: Dow off 0.26%, S&P 500 dips 0.09%, Nasdaq up

0.07%

Oct 1 (Reuters) - U.S. stock index futures were flat to

slightly lower on Tuesday as investors awaited labor market

data, a day after Federal Reserve Chair Jerome Powell pushed

back against market expectations for outsized interest rate

cuts.

At an economics conference on Monday, Powell reiterated that

the central bank is likely to reduce borrowing costs by an

additional 50 basis points by year-end, based on data that

pointed to robust consumer spending and gross domestic income.

Traders were on the fence regarding the size of the Fed's

upcoming interest rate cuts. They are now pricing in a 25 bps

reduction at the November meeting with a 62.7% probability,

compared with 41.8% a week ago, as per the CME Group's FedWatch

Tool.

With inflation nearing the central bank's 2% target, focus

is squarely on the labor market as the Fed kicked off monetary

policy easing in September.

All eyes are on August's job openings and labor turnover

survey (JOLTS) due at 10 a.m. ET, along with the Institute for

Supply Management's final estimate for manufacturing activity in

September.

"Given that Powell thinks inflation has been conquered, a

surprise in the employment reports could still alter the Fed's

course," analysts at Rabobank said in a note.

"After all, it's not preset. For example, very poor

employment growth or a jump in the unemployment rate could still

push the FOMC (Federal Open Market Committee) to make a 50 bps

cut."

At 5:34 a.m. ET, Dow E-minis were down 111 points,

or 0.26%, S&P 500 E-minis were down 5.25 points, or

0.09% and Nasdaq 100 E-minis were up 15 points, or

0.07%.

Comments from policymakers including Atlanta Fed boss

Raphael Bostic, Richmond chief President Thomas Barkin, Boston

Fed President Susan Collins and Governor Lisa Cook will be

parsed for their insights on the economy and the monetary policy

outlook.

Wall Street's three main indexes closed September higher,

bucking a historical trend where equities' performance have been

weak on average during the month. The benchmark S&P 500

and blue-chip Dow notched their fifth straight month in

gains and closed near record highs in the previous session.

Markets also monitored a port strike on the East Coast and

the Gulf Coast, halting the flow of about half the nation's

ocean shipping. Shares of Designer Brands ( DBI ), Costco

, Walmart ( WMT ) and CH Robinson ( CHRW ) were little

changed in premarket trading.

CVS Health ( CVS ) added 2.3% after a report showed the

healthcare firm is exploring options that could include a

break-up of the company to separate its retail and insurance

units.

Tesla was flat ahead of reporting third-quarter

deliveries on Wednesday, with analysts expecting an 8% jump from

a year ago.