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Futures off: Dow 0.29%, S&P 500 0.30%, Nasdaq 0.42%

Oct 3 (Reuters) - U.S. stock index futures slipped on

Thursday as markets awaited data for insights on the economic

outlook and the likelihood of further interest-rate cuts from

the Federal Reserve, while watching for a potential escalation

in Middle East hostilities.

Wall Street's three main indexes closed flat in the previous

session after a private survey signaled that the labor market

was not in a sharp deterioration.

Caution prevailed nonetheless, as investors contemplated the

scale of Israel and the United States' response to Iran's recent

attack on Israel. The CBOE volatility index, Wall Street's fear

gauge, hovered at more than three-week highs at 19.96.

At the top of the day's agenda is a report which is expected

to show that the number of Americans filing for unemployment

benefits stood at 220,000 for the week ending Sept. 28, up from

218,000 the week before that. The pivotal nonfarm payrolls

figures are due on Friday.

Also on tap is the Institute for Supply Management's survey

on services sector activity, which makes up the majority of the

U.S. economy. For the month of September, the index is expected

to stay in expansion territory at 51.7.

At 05:36 a.m. ET, Dow E-minis were down 124 points,

or 0.29%, S&P 500 E-minis were down 17.25 points, or

0.30% and Nasdaq 100 E-minis were down 84.5 points, or

0.42%.

U.S. stocks have rallied for much of the year, with the

benchmark S&P 500 confirming a bull rally and logging

gains in eight of the previous nine months on expectations of

lower borrowing costs.

Tech stocks have led the charge on the prospect of

their earnings getting a boost from artificial intelligence

integration.

Investors will also assess comments from Fed policymakers

Raphael Bostic and Neel Kashkari later in the day. Odds that the

U.S. central bank will trim rates by 25 basis points at its

November meeting stand at 63.9%, up from 50.7% a week ago,

according to the CME Group's FedWatch Tool.

Meanwhile, a workers' strike on the East and Gulf coasts

entered its third day. Morgan Stanley economists said a

prolonged stoppage could raise consumer prices, with food prices

likely to react first.

Among premarket movers, oil stocks such as Occidental

Petroleum ( OXY ) and Exxon Mobil ( XOM ) were flat, although

crude prices rose more than 1% as investors priced in possible

supply disruptions in the Middle East.

Levi Strauss tumbled 11.3% after the company said

it was considering a sale of its underperforming Dockers brand

and forecast fourth-quarter revenue below expectations.

Tesla dropped 1.7% a day after reporting a

smaller-than-expected rise in third-quarter deliveries. The EV

maker also discontinued its most affordable Model 3 compact

sedan in the U.S.