Wall Street opens higher amid heightened odds of Fed rate cuts

Major equity indexes in the United States started the day in the positive territory on Wednesday as the disappointing employment data published by the ADP today ramped up the odds of the Fed going for one or more rate cuts in the remainder of the year. As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 0.45% on a daily basis while the Nasdaq Composite was adding 0.62%.

According to the monthly report published by the ADP, private sector employment increased 27,000 in May to record its lowest reading in more than nine years and fell short of the market expectation of 180,000.

Among the 11 major S&P 500 sectors, the Technology Index is adding more than 1% to lead the gains. On the flip side, the Energy Index is down 1% on the day to limit Wall Street's rally for the time being.