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Futures off: Dow 0.11%, S&P 500 0.26%, Nasdaq 0.33%

Jan 10 (Reuters) - U.S. stock index futures slipped on

Friday ahead of a crucial labor market report, at a time when

concerns around inflation and the incoming Trump

administration's policies have clouded the Federal Reserve's

monetary policy outlook.

At 5:31 a.m. ET, Dow E-minis were down 48 points,

or 0.11%, S&P 500 E-minis were down 15.75 points, or

0.26% and Nasdaq 100 E-minis were down 70.5 points, or

0.33%.

Elevated Treasury yields also added to investor nervousness,

with those on the 10-year benchmark near eight-month

highs at 4.69%.

All eyes are on the Labor Department's non-farm payrolls

report, due at 8:30 a.m. ET, after a set of jobs data earlier in

the week painted conflicting views about the state of

employment.

Friday's data is expected to show the economy added 160,000

jobs in December, with unemployment staying steady at 4.2% from

the month before.

Later in the day, investors will also assess the University

of Michigan's preliminary report on consumer sentiment for

January.

Wall Street's main indexes are poised to close their second

consecutive week in the red, with the benchmark S&P 500

down nearly 3% from its record high hit a month ago.

Fresh inflation worries have taken the spotlight, compelling

the Fed to issue a cautious forecast on monetary easing last

month, as it anticipates policy changes on trade and immigration

under President-elect Donald Trump, who is expected to take

office in 10 days time.

Multiple reports on his plans, including one on imposing a

national economic emergency to fast track tariff implementation,

have left investors on edge about their potential impact on the

economy and global trade.

The Russell 2000 index, tracking domestically focused

small-cap companies, has lost over 8% from its record high hit

in late November. Futures tracking the index dipped

0.4% on Friday.

On Thursday, voting members on the Federal Open Market

Committee, including Boston Fed President Susan Collins and

Kansas City Fed President Jeff Schmid, voiced the need for a

measured approach to lowering borrowing costs this year.

Traders see the central bank leaving interest rates steady

for much of the first half of 2025, according to the CME Group's

FedWatch Tool.

Among premarket movers, chip stocks such as Nvidia ( NVDA )

lost 1.1% and Advanced Micro Devices ( AMD ) dropped 2.2% after

a report said the U.S. could announce new export regulations as

early as Friday.

U.S.-listed shares of TSMC added 1.3%

after the world's largest contract chipmaker reported

fourth-quarter revenue above market forecasts as it reaped the

benefit of artificial intelligence demand.

Quarterly reports from Walgreens Boots Alliance ( WBA ),

Constellation Brands ( STZ ) and Delta Air Lines ( DAL ) are on

tap before markets open.

Earnings reports will pick up next week and investors wait

to hear the possible impact the incoming government's policy

proposals could have on companies, along with insights into the

resilience of the consumer and the U.S. economy.