* Futures mixed: Dow up 0.2%, S&P 500 flat, Nasdaq down 0.3%
* Economists forecast June nonfarm payrolls growth of
110,000 jobs Bending Spoons falls 3.7%, a day after Nasdaq debut
(Updates prices)
By Niket Nishant and Avinash P
July 2 (Reuters) - Wall Street futures were mixed on
Thursday as investors awaited the June employment report, while
a lack of progress in negotiations to end the Middle East war
weighed on sentiment.
Markets had a choppy sessionon Wednesday, with the main
indexes settling lower, as Federal Reserve Chair Kevin Warsh
said inflation risks had eased but committed to sticking firmly
to the U.S. central bank's 2% inflation target, vowing to
"disappoint" anyone who expected a loose monetary policy.
U.S. President Donald Trump has repeatedly called for lower
borrowing costs and criticized Warsh's predecessor, Jerome
Powell, for keeping rates elevated for too long.
"Markets have had a rocky start so far to Q3," a group of
Deutsche Bank analysts, led by its global head of macro
research, Jim Reid, wrote in a note.
They noted, however, that there was still "a fair amount of
optimism" among investors.
Traders expect at least one rate hike by the Fed this year,
according to data compiled by LSEG.
Some recent data has suggested that the labor market is
stable, potentially giving the central bank more leeway to hike
rates to contain inflation, without risking significant fallout
on employment.
Additionally, the U.S. and Iran concluded a round of
indirect talks on Wednesday with no sign they had made headway
toward lasting peace, adding another layer of uncertainty.
Investors will get a fresh read on the health of the labor
market when the closely watched nonfarm payrolls report is
released later on Thursday.
A Reuters survey of economists predicted that payrolls
likely increased by 110,000 jobs last month after rising
172,000 in May.
However, some predicted that the data may be distorted
because of hiring linked to the FIFA World Cup.
"As a result, markets are likely to place greater weight on
the June CPI (consumer price index) report due on July 14, as
inflation data will offer a cleaner read on the economy," said
Julien Lafargue, chief market strategist at Barclays Private
Bank.
At 06:40 a.m. ET, Dow E-minis were up 98 points, or
0.19%, with 11,653 contracts changing hands, S&P 500 E-minis
were flat and Nasdaq 100 E-minis were down 94.25
points, or 0.31%.
Several chip stocks fell in premarket trading, with SanDisk ( SNDK )
and Arm Holdings down 2.2% each, pressuring the
technology-heavy Nasdaq futures.
The Philadelphia SE Semiconductor index eased 6.3%
on Wednesday, right after registering its best ever quarterly
performance on record with a near 88% gain.
Bending Spoons slipped 3.7% a day after the Vimeo
owner gained 40% in its debut on the Nasdaq.