U.S. stock index futures rose slightly on Wednesday as investors bet on a potential rate cut from the Federal Reserve later this month after the release of weaker-than-expected economic data.
Wednesday’s session ends at 1 p.m. ET due to the Fourth of July holiday.
Private payrolls in the U.S. increased by 102,000 in June, ADP and Moody’s Analytics said. Economists polled by Dow Jones expected growth of 135,000.
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The disappointing data strengthens the Fed’s case for lowering rates at its monetary policy meeting at the end of July. Last month, the central bank opened the door to easier monetary policy by stating it will “act as appropriate” to maintain the current economic expansion.
Wall Street got off to a strong start this week following a trade truce between the two world’s two largest economies.
The U.S. and China agreed to restart trade talks over the weekend, after President Donald Trump offered concessions — including no new charges and an easing of restrictions on tech company Huawei — to soothe tensions with Beijing.
However, the initial enthusiasm over the latest trade truce between Washington and Beijing has since been overtaken by intensifying concerns over the Trump administration’s threat of tariffs on additional European goods.
The U.S. Trade Representative’s office released a list of products — including olives, Italian cheese, and Scotch whiskey — that could be hit with new levies in addition to those introduced in April. It comes after the U.S. government threatened to impose tariffs on $4 billion worth of EU goods on Monday, as part of a long-running dispute over aircraft subsidies.
In corporate news, Tesla shares jumped more than 7% after the auto maker reported record delivery and production numbers.
Source: cnbc.com | Original Link