- Risk-on flows continue to help US stocks push higher.
- ADP employment report comes in much better than expected in May.
- S&P 500 Financials Index gains more than 2% on Wednesday.
Wall Street’s main indexes opened decisively higher on Wednesday as risk-rally remains intact on optimism over the global economy recovering in the second half of the year. As of writing, the S&P 500 was up 0.85% on the day at 3,106 points while the Dow Jones Industrial Average and the Nasdaq Composite were gaining 0.9% and 0.35%, respectively.
ADP jobs report fuel stocks’ advance
Earlier in the day, the Automatic Data Processing (ADP) Research Institue reported that the private sector employment in the US declined by 2.76 million in May. This reading marked a sharp rebound from April’s reading of -19,557,000 and came in much better than the market expectation of -9 million.
Among the 11-major S&P 500 sectors, both the Financials Index and the Energy Index gain more than 2% as the top performers. On the other hand, the Communication Services Index is up only 0.1% on the day.
Later in the session, investors will keep a close eye on the ISM’s Non-Manufacturing PMI data to see how the service sector performed in May.
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