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Futures: Dow down 0.05%, S&P 500 up 0.01%, Nasdaq down

0.02%

May 23 (Reuters) - U.S. stock index futures were muted

on Friday as investors were risk-averse after President Donald

Trump's tax and spending bill won a crucial House vote the

previous day, raising concerns about the country's deteriorating

fiscal outlook.

The Republican-controlled U.S. House of Representatives

passed the sweeping tax and spending bill on Thursday that would

enact much of Trump's policy agenda. The bill now heads to the

Senate, which Republicans control 53-47, for approval.

If it becomes a law, the bill will add about $3.8 trillion

to the federal government's $36.2 trillion debt over the next

decade, according to the nonpartisan Congressional Budget

Office.

"A ballooning debt could crowd out private investment, which

could thereby slow down economic growth, and more importantly,

it could limit the government's ability to respond to crises

with spending," Charalampos Pissouros, senior market analyst at

XM said in a note.

Long-dated government bond yields eased on Friday, with

those on the 10-year note off 3.8 basis points to

4.51%.

At 05:16 a.m. ET, Dow E-minis were down 23 points,

or 0.05%, S&P 500 E-minis were up 0.5 points, or 0.01%,

and Nasdaq 100 E-minis were down 4.5 points, or 0.02%.

Most megacap and growth stocks were higher in premarket

trading, with Tesla outpacing the rest with a 1.5%

gain.

Shares of nuclear power firms soared after a Reuters report

said Trump would sign executive orders aimed at jumpstarting the

nuclear energy industry as soon as Friday.

Vistra ( VST ) gained 4.1% and the Global X Uranium ETF

climbed 9.3%.

Deckers Outdoor ( DECK ) slumped 16.8% after the maker of

UGG boots said it would not provide annual targets owing to

tariff-led macroeconomic uncertainty and forecast first-quarter

net sales below estimates.

All three main stock indexes were set for modest weekly

losses as worries about mounting U.S. debt pushed Treasury

yields higher. Moody's downgrade of the U.S. credit rating late

last week had initially sparked concerns.

Still, the S&P 500 and the Nasdaq were set

for their best monthly showing of the year. A pause in tariffs,

a temporary U.S.-China trade truce and tame inflation data have

pushed equities higher, although the S&P 500 is still about 5%

off record highs.

A Bank of America Global Research report stated that U.S.

equities saw their fifth weekly outflow in six in the week till

Wednesday.

At least three Federal Reserve officials including Kansas

City Fed President Jeffrey Schmid are slated to speak later in

the day.

Traders currently see at least two 25-basis-point rate cuts

by the end of the year, with the first one anticipated in

September, according to data compiled by LSEG.

Trading activity is expected to thin on Friday, heading into

a long weekend, as markets will be shut on Monday for the

Memorial Day holiday.