New York, NY – Stock futures in the U.S. pointed higher on Wednesday, buoyed by a positive previous session which saw key averages on Wall Street climb. Investors were digesting data that indicated a slowdown in labor demand in the country, potentially paving the way for future interest rate cuts by the Federal Reserve.
The futures for the S&P 500, Dow Jones, and Nasdaq were all showing gains in early morning trading, with the ADP private payrolls report and the all-important nonfarm payrolls report on Friday being closely watched by traders. Economists were estimating that private employers would have added around 173,000 workers in May, a decrease from the previous month.
Meanwhile, Samsung shares saw a significant boost on hopes that the Korean firm would soon start supplying artificial intelligence chipmaker Nvidia. Nvidia’s Chief Executive mentioned that the company was working towards certifying Samsung’s high-bandwidth memory chips, potentially opening up a new avenue for Samsung in the semiconductor market.
In China, the services sector saw stronger-than-expected growth in May, with the Caixin PMI rising to 54.0, surpassing estimates and reflecting improving local and overseas demand. This contrasted with official PMI data released earlier, indicating a slower rise in non-manufacturing activity. The Caixin survey focuses on smaller, private businesses in southern China, providing a different perspective than the official survey which looks at larger, state-run companies in the north.
On the energy front, oil prices remained choppy on Wednesday after data showed a significant build in U.S. inventories, raising concerns about demand despite the start of the travel-heavy summer season. The oil market also faced weakness after a recent meeting of OPEC+, where the possibility of voluntary cuts being unwound gradually from October onward was discussed, adding to worries of oversupply in the market.
Overall, the markets were showing resilience in the face of various economic indicators, with investors keeping a close eye on upcoming reports and developments that could shape future monetary policy decisions.