By Yashaswini Swamynathan
REUTERS - U.S. stocks were set to open higher on Wednesday, a day after comments by Federal Reserve Chair Janet Yellen allayed concerns that the central bank would take an aggressive approach to raising interest rates this year.
Yellen, who made her first remarks since the Fed's meeting earlier this month, said inflation in the United States had not yet reached sustainable levels amid risks posed by uncertainty about China's economy and low oil prices.
Yellen's stance contrasts with recent comments from other policymakers who have voiced support for more than one increase this year.
Global markets cheered Yellen's remarks, which suggested that a rate hike was not immediately on the horizon. The dollar fell more than a percent, while bond prices rallied.
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"Yellen's comments allowed investors to breathe a sigh of relief that the Fed will not be raising rates in April," said Sam Stovall, U.S. equity strategist at S&P Global Market Intelligence in New York.
Stovall said the Fed would focus on data to see whether a hike in June would be possible.
Data on Wednesday showed the U.S. private sector added 200,000 jobs in March, more than the 194,000 expected. The report, by payrolls processor ADP, serves as a precursor to the more comprehensive nonfarm payrolls data on Friday.
At 8:17 a.m. ET (1217 GMT), Dow e-minis were up 101 points, or 0.58 percent, with 25,271 contracts changing hands. S&P 500 e-minis were up 10.75 points, or 0.53 percent, with 201,205 contracts traded. Nasdaq 100 e-minis were up 32 points, or 0.72 percent, on volume of 28,179 contracts.
Wall Street rose on Tuesday, with the S&P 500 moving back in to positive territory and closing at its highest level for the year.
Crude oil rose about 2 percent on the weaker dollar and a report showed a less-than-expected build in U.S. crude stockpiles last week.
Lululemon shares were up 5.7 percent at $64.75 premarket after the Canadian yogawear retailer reported higher-than-expected quarterly net profit.
Valeant was up 5.5 percent at $30.58 after the Canadian drugmaker sought a waiver from lenders on a condition in its credit facility and said it was comfortable with its liquidity position.
Wynn Resorts was up 1.2 percent at $95.26 after J.P. Morgan raised its price target on the stock.
Apple was up 1.1 percent at $108.90 after Cowen raised its rating on the stock to "outperform".
(Reporting by Yashaswini Swamynathan and Abhiram Nandakumar; Editing by Saumyadeb Chakrabarty)
