US STOCKS-S&P 500 set to open at record high on rising rate cut hopes

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* U.S. 10-yr Treasury yields fall to lowest since Nov 2016
* Symantec jumps on report Broadcom in deal talks
* Futures up: Dow 0.21%, S&P 0.23%, Nasdaq 0.23%

(Updates prices, add comments)
By Shreyashi Sanyal
July 3 (Reuters) - The S&P 500 index was set to open at a
record high on Wednesday, bolstered by rising bets of an
interest rate cut as global benchmark bond yields fell to new
lows on growth fears.
Hopes of rate cuts by central banks were fueled by fears of
a global recession due to the simmering trade tensions despite a
recent truce between the United States and China, with the
nomination of IMF chief Christine Lagarde to head the European
Central Bank adding to the expectations.
The benchmark U.S. 10-year Treasury yields US10YT=RR
slipped to their lowest since November 2016, while the 10-year
UK gilts yield fell below the Bank of England's main policy rate
for the first time in a decade. US/
"The indices are pointing to a higher opening as yields fall
with both the 10-year Treasury yield and German Bunds signaling
heightened worries over the global economy," said Peter
Cardillo, chief market economist at Spartan Capital Securities
in a client note.
Traders now bet for about a 25% chance the Federal Reserve
would cut borrowing costs by half a percentage point at its July
30-31 policy meeting. MMT/
Bets that the central bank would cut rates to preserve a
decade-long U.S. expansion helped the S&P 500 and the Dow Jones
indexes post their best June performance in decades.
The ADP National Employment Report, often considered a
precursor to the Labor Department's more comprehensive monthly
non-farm payrolls data, showed U.S. private employers added
102,000 jobs in June, below economists' expectations.

Trading volumes are expected to be thin due to shortened
trading hours on Wednesday ahead of the July Fourth holiday.
At 8:49 a.m. ET, Dow e-minis 1YMcv1 were up 57 points, or
0.21%. S&P 500 e-minis EScv1 were up 6.75 points, or 0.23% and
Nasdaq 100 e-minis NQcv1 were up 18 points, or 0.23%.
Investors also awaited a Commerce Department report, due at
10:00 a.m. ET, that is likely to show factory orders fell 0.5%
in May, after slipping 0.8% in April.
Among stocks, Symantec Corp SYMC.O surged 14.8% in
premarket trading after sources told Reuters that chipmaker
Broadcom Inc AVGO.O is in advanced talks to buy the
cybersecurity firm. Broadcom fell 4.0%. Shares of U.S.-listed gold miners gained as prices of the
precious metal rose on safe-haven bets.