US Stock Futures Dip on Trade Concerns Amid Fed Cautiousness
US stock index futures declined on Thursday as investors became risk-averse following fresh tariff threats from President Donald Trump. Geopolitical tensions and cautious remarks from the Federal Reserve further dampened sentiment.
Trump announced plans to impose tariffs on lumber and forest products, adding to earlier threats on imported cars, semiconductors, and pharmaceuticals. He also denounced Ukrainian President Volodymyr Zelenskiy and raised concerns over a potential peace deal with Russia.
Amidst uncertainty, safe-haven assets such as gold and the Japanese yen gained ground, while Treasury yields fell. Minutes from the Fed's January policy meeting revealed concerns about Trump's policies and emphasized the need to keep interest rates stable until inflation falls below the target of 2%.
The S&P 500 hit a record high on Wednesday, but futures indicated a retreat Thursday. Analysts at Nordea noted that investors remained cautious despite Trump's policy announcements.
Upcoming economic data includes jobless claims and comments from Fed officials. Walmart, Hasbro, and Alibaba are among companies reporting earnings.
At the time of writing, Dow E-minis were down 0.13%, S&P 500 E-minis were down 0.22%, and Nasdaq 100 E-minis were down 0.29%. Megacap and growth stocks generally trended lower, with Microsoft as an exception. Palantir Technologies dropped after reports of potential budget cuts for its services.