U.S. Futures Dip as Fed Signals Rate Hike Pause
U.S. equity futures retreated after the S&P 500 (ES=F) reached a record high for the second consecutive day. Investors digested signals that the Federal Reserve is unlikely to cut interest rates anytime soon.
* S&P 500 futures (ES=F) declined 0.3%.
* Nasdaq futures (NQ=F) dropped 0.5%.
* Dow Jones futures (YM=F) slipped 0.2%.
The Federal Reserve released minutes from its January meeting, indicating support for a pause in rate cuts. Officials cited tariffs and immigration policies as potential inflation drivers.
General Motors (GM) announced plans to review plant locations due to impending auto tariffs.
Meanwhile, Defense Secretary Pete Hegseth's announcement of an 8% military spending cut prompted a sell-off in Palantir (PLTR) shares, which plunged 10% before declining another 3% in after-hours trading.
Earnings season continues with Walmart (WMT) expected to report better-than-expected results.
Morgan Stanley (MS) strategists have reversed their bearish outlook on Chinese stocks, citing the country's advancements in AI.