Wall Street Sees Another Round of Rally on Fed’s Dovish Tone

US stocks pointed north Wednesday after an upbeat close in the previous session amid optimism that the Federal Reserve remains ready to intervene with rate cuts to support economic growth.

On Tuesday, Fed Chair Jerome Powell said that the US central bank was ready to step in and “act as appropriate to sustain expansion.”

Oil prices nudged lower with global benchmark Brent crude down 0.71%, and US crude West Texas Intermediate down 1.51% after an unexpected gain in US crude stockpiles.

Data released at 8:15 am showed a May private payrolls estimate from ADP of 27,000, far lower than the 175,000 expected and compared with the previous month’s ADP estimate of 275,000 and the 236,000 reported by the government, according to data compiled by Econoday.

At 9:45 am, the May headline for the Purchasing Managers’ services index is expected to come in at 50.9 vs 53.0 headline in the previous month.

At 10 am, forecasters see a steady strength in the non-manufacturing index based on the Institute for Supply Management survey at a consensus of 55.8 for May vs April’s 55.5.

In equities, shares of Sierra Oncology (SRRA) were 22.9% higher pre-bell after the company received a fast-track designation from the US Food and Drug Administration for momelotinib in certain patients with myelofibrosis.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial up 0.25%

-S&P 500 futures up 0.20%

-Nasdaq 100 futures up 0.39%

-Nasdaq 100 pre-market indicator up 0.65%

GLOBAL SENTIMENT

Nikkei up 1.80%

Hang Seng up 0.50%

Shanghai Composite down 0.03%

FTSE-100 up 0.18%

DAX-30 down 0.01%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: unchanged to higher

(+) Chip stocks: unchanged to higher

(+) Software stocks: higher

(+) Hardware stocks: unchanged to higher

(+/-) Internet stocks: mixed

(+/-) Oil stocks: mixed

(=) Biotech stocks: unchanged

(+/-) Drug stocks: mixed

(+/-) Financial stocks: mixed

(+/-) Retail stocks: mixed

(+) Industrial stocks: unchanged to higher

(+) Airlines: unchanged to higher

(+) Autos: unchanged to higher

UPSIDE MOVERS

(+) RWLK (+185%) FDA approves Exo-Suit mobility device

(+) AMBA (+10.2%) Reports surprise Q1 profit

(+) SIEN (+6%) Prices upsized stock offering at $5.75/share

DOWNSIDE MOVERS

(-) IFRX (-82.3%) IFX-1 fails to demonstrate a statistically significant dose dependent effect in phase 2b trial in Hidradenitis Suppurativa patients

(-) GME (-29.5%) Fiscal Q1 sales miss estimate, terminates quarterly dividend

(-) PVTL (-28.5%) Revenue guidance lags estimates, Q1 results top expectations

(-) WORX (-13.4%) Secures 5-year $4.6 million contract with major healthcare firm

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