US STOCKS

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Levi Strauss falls after slashing annual profit outlook

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US job growth slows in June; unemployment rate falls to 3.6%

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Futures down: Dow 0.22%, S&P 0.24%, Nasdaq 0.19%

(Updated at 0901 a.m. ET/1301 GMT)

By Bansari Mayur Kamdar and Johann M Cherian

July 7 (Reuters) - Wall Street's main indexes were set to open slightly lower on Friday after latest data signaled resilience in the labor market in the face of the Federal Reserve's aggressive monetary tightening.

The data showed that while U.S. job growth slowed more than expected in June after surging in the previous month, labor market conditions remained tight, with the unemployment rate retreating from a seven-month high and strong wage gains continuing.

"Today's numbers confirm the job market is still strong... and this report gives the green light to the Fed to raise rates," said Peter Cardillo, chief market economist at Spartan Capital Securities.

"As far as the markets are concerned, the key is the Fed threat, and as you can see, we're pulling back in futures."

Traders stuck to bets the Fed will raise its benchmark interest rate this month to a 5.25%-5.5% range, but were skeptical of further hikes beyond that.

Traders now see about a 37% chance of a further rate hike in November, down from nearly even odds before the report, according to CME's Fedwatch tool.

Most tech and growth megacaps, valuations in which come under pressure when borrowing costs rise, edged down in premarket trading, with Microsoft and Alphabet down 0.3% each.

Wall Street's main indexes ended sharply lower on Thursday in a broad selloff, with the benchmark S&P 500 posting its biggest daily percentage drop in six weeks.

At 09:01 a.m. ET, Dow e-minis were down 75 points, or 0.22%, S&P 500 e-minis were down 10.5 points, or 0.24%, and Nasdaq 100 e-minis were down 28.25 points, or 0.19%.

All three major U.S. stock indexes were on track to end the week lower as escalating tensions between Beijing and Washington also weighed on market sentiment.

Among other early movers, Tesla edged up 0.5% after it said it would offer new buyers of its top-selling electric vehicles in China a cash bonus equivalent to almost $500 if they have a referral from an existing owner.

Levi Strauss & Co tumbled 7.5% as the denim clothing maker cut its annual profit forecast on Thursday. (Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru, additional reporting by Caroline Valetkevitch; Editing by Shinjini Ganguli)

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