* Nonfarm payrolls increase 75,000 in May
* Traders boost bets on Fed rate cuts, starting in July
* Beyond Meat surges after upbeat 2019 sales forecast
* Futures up: Dow 0.20%, S&P 0.28%, Nasdaq 0.42% (Updates prices, adds details, changes comment)
By Amy Caren Daniel and Sruthi Shankar
June 7 (Reuters) - U.S. stock index futures rose on Friday as hopes of an interest rate cut by the Federal Reserve were lifted by a sharp slowdown in May domestic job growth and moderate wage increases.
A report that the United States would give China more time to avoid a tariff hike helped add to the gains.
U.S. employers added 75,000 jobs last month, much smaller than the 185,000 jobs economists polled by Reuters had forecast, suggesting the loss of momentum in economic activity was spreading to the labor market.
“This is the type of read the doves will really take to, as it supports the argument for cutting rates beyond politics or trade issues, which were never part of the Fed’s mandate to begin with,” said Mike Loewengart, vice-president of investment strategy at E*Trade Financial in New York. “Even though the number came in low, we’re still creating jobs, which supports the case that the economy is still expanding, so the Fed will have to walk a really thin line.”
The sign of cooling in the labor market led traders of short-term interest rate futures to add to bets that the Federal Reserve will start to cut rates in July and reduce them two more times before the end of the year.
Hopes that the Fed would turn more accommodative to blunt the impact of escalating trade tensions have helped the S&P 500 clock three straight sessions of gains and also put the benchmark index on track for its first weekly gain since May 3.
At 9:01 a.m. ET, Dow e-minis were up 52 points, or 0.2%. S&P 500 e-minis were up 8 points, or 0.28% and Nasdaq 100 e-minis were up 30.25 points, or 0.42%.
The Office of the United States Trade Representative said Washington extended the date for implementing the increase for some Chinese imports from June 1 to June 15.
Investors will also track talks between the United States and Mexico, a day after the three main indexes ended higher on a Bloomberg report that President Donald Trump could delay the tariffs he had threatened on Mexican goods.
Among stocks, Beyond Meat Inc shares surged 26.1% in premarket trading after the maker of plant-based burgers and sausages said it expects to more than double its revenue and report breakeven EBITDA this year.
Caesars Entertainment Corp jumped 6% after the Wall Street Journal reported the company was nearing a deal to combine with rival Eldorado Resorts Inc. (Reporting by Amy Caren Daniel and Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)