Investing.com - U.S. stock futures pointed to a higher open on Wednesday, as investors looked ahead to private payroll data and more comments from Federal Reserve officials for further hints on the timing of a U.S. rate hike.
The U.S. was to release the ADP employment report for March at 13:15GMT, or 8:15AM ET, amid expectations for a gain of 194,000 jobs.
Traders will also be paying attention to a speech by Chicago Fed President Charles Evans later in the day to further judge the balance of opinion among policymakers on the prospect of further rate hikes.
The blue-chip Dow futures jumped 110 points, or 0.62%, by 10:45GMT, or 6:45AM ET, the S&P 500 futures tacked on 13 points, or 0.61%, while the tech-heavy Nasdaq 100 futures advanced 34 points, or 0.74%.
Wall Street rallied on Tuesday, with the Dow and S&P 500 closing at their highest levels of the year after Federal Reserve Chair Janet Yellen called for caution on raising interest rates.
Speaking to the Economic Club of New York, Yellen said global risks to the U.S. economy, including low oil prices and uncertainty over China justified taking a cautious approach to tightening monetary policy.
The comments contrasted with recent hawkish remarks by some Fed officials who indicated that the bank could act as soon as next month to raise interest rates.
Investors and economists dialed back their rate hike expectations in wake of Yellen’s dovish outlook, with traders of interest-rate futures now seeing no rate rise before November.
The prospect of less U.S. interest rate hikes this year drove the dollar down against its major rivals. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slumped to an eight-day low of 94.79 in early trade. It last stood at 94.98.
Among active pre-market movers, yogawear maker Lululemon Athletica (NASDAQ:LULU) saw shares gain 2.5% after reporting better than expected fourth quarter earnings Wednesday morning, though the company issued a soft forecast for the current quarter.
Shares of fast-food chain Sonic Corp (NASDAQ:SONC) rose 4.3% after reporting a jump in profit late Tuesday, while providing upbeat guidance.
On the downside, Restoration Hardware Holdings Inc (NYSE:RH) was down nearly 5% after it lowered its earnings forecast for the current quarter, citing shipping delays and extra costs with its new line of furniture.
Elsewhere, European markets advanced for a second day as investors cheered Yellen’s cautious stance on U.S. rate hikes. Earlier, markets in Asia closed mostly higher, following an upbeat performance in U.S. equities overnight.
Japanese shares bucked the trend after factory output in February posted the largest drop since a massive earthquake and tsunami in 2011, adding to fears that the economy is at risk of falling into a recession.
In the commodities market, West Texas Intermediate oil prices bounced off a more than two-week low on Wednesday, amid speculation weekly supply data due later in the session will show U.S. crude inventories rose at a slower pace than expected last week.
The U.S. Energy Information Administration will release its weekly report on oil supplies at 14:30GMT, or 10:30AM ET, amid expectations for a gain of 3.3 million barrels. After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. oil inventories rose by 2.6 million barrels in the week ended March 25.
Meanwhile, gold futures extended gains from the prior session to trade near a one-week high as investors scaled back expectations for how soon and how far U.S. interest rates might rise this year. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.