US OPEN: Dovish Fed comments spark post-holiday optimism 🟢

• Wall States trades higher after Fed’s Waller’s dovish comments

• Accenture dips on mixed Q3 results

US equities opened with a great dose of optimism after a Juneteenth holiday, downplaying both geopolitical risks and Fed’s recent FOMC statement, pointing to a more hawkish stance and weaker macroeconomic forecasts. All major US indices trade in the green, with Russell 2000 leading gains (+0,4%). S&P 500 and Dow Jones add 0.3%, while tech-heavy Nasdaq trimmed some of its gains, currently trading 0.2% higher.

Wall Street benefits greatly from Federal Reserve Governor Christopher Waller’s signals that the central bank could begin cutting interest rates as early as July, citing inflation and growth now hovering near the Fed’s targets. In a CNBC interview, Waller said rates are currently 1.25–1.5 percentage points above the neutral level and could be lowered without risking overheating. 

He views the inflationary impact of President Trump’s new tariffs as likely temporary and emphasized flexibility if conditions deteriorate, such as from Middle East tensions. Waller’s comments come after the Fed held rates steady for a fourth consecutive meeting, with a divided committee—seven members foresee no cuts this year, while the median projection still shows two cuts by year-end.

Performance of S&P 500’s sectors. Source: Bloomberg Finance LP

US100 (D1)

The Nasdaq index futures are up 0.2% half an hour after session’s opening. The index has gained nearly 2% today. Investors are currently testing the key resistance level of 22,098, which marks the high from two days ago. A breakout above this level could trigger a strong upward move, potentially pushing the index toward new highs (all-time high at 22,329) following the declines seen earlier this week. However, uncertainty and risks remain due to potential developments related to the Israel-Iran situation and the U.S.-China trade war. Additionally, reluctance to hold positions over the weekend could potentially weigh on the index.

Source: xStation5

Company news:

• Accenture’s (ACN.US) shares drop 7.2% after releasing mixed third-quarter results and a cautious revenue outlook for the year. Q3 revenue slightly beat expectations ($17.7B vs est. $17.32B), but bookings fell -6.6% y/y.

• Shares of Capricor Therapeutics (CAPR) plunge 20% following news that Nicole Verdun, key FDA official overseeing Capricor’s drug approval, was placed on administrative leave.

• Shares of GMS Inc. (GMS.US) rally 30% after a report of a potential $5B acquisition bid from Home Depot sparked optimism. If the bid materializes, it could be GMS’s biggest price surge on record.

• Circle Internet Group’s (CIG.US) shares surge 15%, following a 34% rally the day before, as the U.S. Senate passed a stablecoin regulation bill. The stock is now up over 540% from its IPO price.