US STOCKS-Futures advance on growing hopes of a rate cut

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Futures gain: Dow 0.68%, S&P 0.69%, Nasdaq 0.86%

By Medha Singh
June 5 (Reuters) - U.S. stock index futures pointed to
further gains on Wednesday, after the indexes racked up their
biggest one-day gains in five months in the prior session,
fueled by rising hopes the Federal Reserve would cut rates to
counter any hit from spiraling trade tensions between the United
States and its partners.
A strong rally this year lost steam in early May after a
sudden escalation in trade frictions compounded global growth
fears and knocked off at least 6% from the three main indexes.
Fed Chairman Jerome Powell said on Tuesday the central bank
was watching the fallout from the trade war and would react "as
appropriate," adding to a dovish remarks from St. Louis Federal
Reserve President James Bullard.
Traders now expect the Fed to reduce borrowing costs as many
as three times in 2019. MMT/
On the trade front, Mexico will begin talks with the United
States on Wednesday where officials will seek to persuade the
White House that they have done enough to curb immigration and
avoid looming tariffs.
President Donald Trump had said he would likely go ahead
with new tariffs on Mexican imports next week, despite some
opposition from his own party. At 6:59 a.m. ET, Dow e-minis 1YMc1 were up 173 points, or
0.68%. S&P 500 e-minis ESc1 were up 19.25 points, or 0.69% and
Nasdaq 100 e-minis NQc1 were up 61.5 points, or 0.86%.
Technology sector .SPLRCT stocks, which powered markets a
day earlier, were set to rise again on Wednesday.
Apple Inc AAPL.O rose 1.7%, while Microsoft Corp MSFT.O
and Cisco Systems Inc CSCO.O were up about 1.2% each and were
the top advancers among the Dow .DJI components trading before
the bell.
Salesforce.com Inc CRM.N gained 4.8% after its quarterly
revenue and profit beat analysts' estimates and forecast
full-year results above expectations. On the economic front, the ISM's non-manufacturing survey,
due at 10:00 a.m. ET, is expected to show a reading of 55.5 in
May, in line with prior month's reading.