### U.S. Stock Futures Rise Amid Trump-Musk Feud and Key Labor Data

Investing.com - U.S. stock futures pointed higher on Friday following a high-profile feud between President Donald Trump and billionaire Elon Musk, significantly impacting Tesla's market value. Investors are now focusing on upcoming labor market data, while Chinese blue-chip stocks edged lower after a talk between Trump and Chinese leader Xi Jinping over trade tensions.

By 03:37 ET (07:37 GMT), the Dow futures had risen by 188 points (0.4%), S&P 500 futures increased by 25 points (0.4%), and Nasdaq 100 futures climbed by 79 points (0.4%). Despite these gains, Thursday's session ended on a lower note for the main averages, heavily influenced by the spat between Trump and Musk, which notably pulled down Tesla shares. This tension dampened hopes for progress in global trade negotiations, especially following a call between Trump and Jinping.

The markets also responded to a second consecutive rise in weekly initial jobless claims and comments from Kansas City Federal Reserve President Jeff Schmid, who expressed concerns over the implications of Trump’s extensive tariffs on inflation. Schmid's remarks have solidified expectations that the Federal Reserve will maintain current interest rates in its upcoming meeting later this month.

Signs are emerging that the Trump-Musk feud might de-escalate. Trump mentioned to Politico that their relationship is "okay" and "going very well, never done better". White House aides are planning for a call on Friday between the two in hopes of resolving their differences. The dispute, primarily over a large tax-and-spending package supported by Trump, has seen both parties exchange heated accusations and threats via social media.

Amid this turmoil, Tesla shares plummeted by over 14%, wiping out approximately $150 billion in market value. Musk’s net worth also fell by around $27 billion to $388 billion, according to Forbes data. Trump’s suggestion to potentially cut off billions of dollars in subsidies to Musk's businesses acted as a catalyst for the significant drop.

On the economic front, all eyes are on the Labor Department's monthly nonfarm payrolls report due on Friday. Economists project the U.S. economy added 126,000 jobs in May, a decrease from 177,000 in April, while the unemployment rate is expected to remain at 4.2%.

Earlier in the week, a report indicated U.S. private employers added fewer jobs than anticipated in May, hinting at a cooling labor market partially due to uncertainties around Trump’s tariff policies. Job openings grew in April, but layoffs also increased, suggesting a potential softening in worker demand.

In China, the Shanghai Shenzhen CSI 300 and Hong Kong's Hang Seng indices both dipped following a call between Trump and Xi Jinping, which provided little clarity on trade tensions. Although recent agreements to lower tariffs have been made, disputes over "rare earths" minerals remain a sticking point.

Despite these economic uncertainties, oil prices are still on track for their first positive week in three, with Brent advancing 2% and WTI trading 4% higher this week. As global supply expectations tighten, the tension in markets continues to grow.