US stock futures flat as Treasury yields hovered near multi-year highs

U.S. stock futures were flat on Friday as Treasury yields hovered near multi-year highs ahead of jobs data that is expected to offer clues on future interest rate hikes.

A surge in bond yields has weighed on Wall Street, with the S&P 500 and the Nasdaq posting their worst day since late June on Thursday.

Fears of accelerating inflation, especially after a string of strong economic data and bullish views from Federal Reserve Chairman Jerome Powell, have dampened the appetite for stocks.

Data from the Labor Department is expected to show non-farm payrolls rose by 185,000 jobs in September after increasing 201,000 a month earlier. The report is due at 8:30 a.m. ET.

Average hourly earnings are forecast to have risen 0.3 per cent after gaining 0.4 per cent in August.

The fresh set of data is expected to keep the Fed on track to raise interest rates again in December and suggest the U.S. central bank's tightening cycle is unlikely to end any time soon.

At 7:34 a.m. ET, Dow e-minis were up 23 points, or 0.09 per cent. S&P 500 e-minis were up 1 point, or 0.03 per cent and Nasdaq 100 e-minis were down 5.25 points, or 0.07 per cent.

Among stocks, Tesla shares fell over 3 per cent in premarket trading after Chief Executive Officer Elon Musk stirred nerves about the settlement of his securities fraud lawsuit by mocking the U.S. Securities and Exchange Commission on Twitter.

Generic drugmaker Mylan slipped 1.2 per cent after Mizuho downgraded the stock to "neutral" from "buy".

Snap Inc rose about 5 per cent on a report that CEO Evan Spiegel has set a goal to achieve full-year profitability in 2019 and outlined a new set of strategic goals, citing a memo.