Major US stock indexes have risen moderately, as disappointing US private sector employment data have increased the likelihood that the Fed will cut interest rates to counter the potential slowdown in the economy.

The ADP and Moody's Analytics report showed that in May, employment in the private sector grew by only 27,000, after increasing by 271,000 jobs in April. Economists had expected an increase of 180,000 jobs. May result was the worst since March 2010.

The disappointing data raised expectations that the US central bank would cut interest rates by at least 75 basis points by the end of the year. Recall, yesterday Fed Chairman Jerome Powell made it clear that the central bank is open to loosen monetary policy in order to save the economy. According to him, the Fed will "act properly" to support economic growth. Powell noted, however, that the Fed does not know “how or when” the trade conflict will be resolved. “We are closely following the implications of these events for the US economic outlook,” he added.

Market participants also drew attention to data from ISM, which indicated an unexpected improvement in business activity in the services sector in May. According to the data presented, the business activity index in the US service sector rose to 56.9 points in May from 55.5 points in April. Analysts predicted that the index will remain at the level of 55.5 points

Meanwhile, trade tensions eased a bit as several Republican legislators noted that they were opposed to new tariffs on Mexican imports, while some hinted at the possibility of blocking their imposition. Meanwhile, Finance Minister Stephen Mnuchin plans to meet with the Governor of the People’s Bank of China and Ghana this weekend. This will be the first personal meeting of key trade negotiators from the United States and China.

Most of the components of DOW finished trading in positive territory (23 of 30). The leader of growth were shares of Cisco Systems, Inc. (CSCO; + 2.76%). Walgreens Boots Alliance, Inc. was an outsider. (WBA; -1.38%).

Almost all sectors of the S & P recorded an increase. The greatest growth was shown by the utility sector (+ 1.5%). Only the raw materials sector declined (-1.1%).

At the time of closing:

Dow 25,540.05 +207.87 +0.82%

S & P 500 2,826.19 +22.92 +0.82%

Nasdaq 100 7,575.48 +48.36 +0.64%

U.S. stock-index futures rose moderately on Wednesday, paring  some of their earlier gains after the release of much weaker-than-expected ADP jobs data.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Uber (UBER) initiated with a Outperform at Raymond James; target $50

American Intl (AIG) downgraded to Hold from Buy at Deutsche Bank