US STOCKS-Wall St set to stumble after jobless rate jumps

(Updates with National Semiconductor rising, updates prices)

*Futures tumble on jump in May unemployment rate

*Market set to erase some of Thursday's rally

*Chip maker National Semiconductor gains on results

By Walker Simon

NEW YORK, June 6 (Reuters) - Wall Street stocks were poised to fall at the open on Friday after the government reported the unemployment rate in May jumped to its highest in more than 3-1/2 years, renewing fears that economy may tip into recession.

The unemployment rate rose to 5.5 percent last month from 5 percent, its highest since October 2004, the Labor Department said. The report also showed the economy shed jobs for a fifth straight month.

"It's crazy ... That doesn't bode well. I think we have to batten down hatches, especially since it's Friday," said Stephen Carl, head of U.S. equity trading at The Williams Capital Group in New York.

"People are going to be coming in aggressively and closing out their equity positions," Carl said.

S&P 500 futures SPc1 were down 9.3 points, well below fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 fell 66 points, while Nasdaq 100 NDc1 futures fell 11.25 points.

The unemployment data will douse the optimism that fueled Wall Street's rally on Thursday, which was the strongest in more than a month. The rally was fueled by energy companies after a surge in oil prices, and by technology shares, which were helped by news of an unexpected fall in weekly jobless benefits claims.

On the positive side, chip maker National Semiconductor Corp (NSM.N) rose nearly 8 percent to $24.25 before the opening bell after it posted revenues and per-share earnings that topped expectations.

Benchmark U.S. crude oil CLc1 rose $3.07 to $130.88 a barrel, extending Thursday's gains from a three-week low. The higher oil price was likely to hurt fuel-sensitive shares, such as airlines. (Editing by Kenneth Barry)