S&P 500 Futures Dip as Fed Minutes Hint at Rate Hike Pause
US future markets declined on Wednesday after the S&P 500 (^GSPC) hit a record high for the second consecutive day. Investors analyzed the latest Federal Reserve (Fed) minutes, which suggested a low likelihood of rate cuts in the near future.
Futures tied to the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) fell by 0.1%.
The Fed's meeting minutes from January revealed that officials supported pausing interest rate cuts. They cited President Donald Trump's tariffs and mass migrant deportations as potential inflationary factors.
Trump's tariffs have led to uncertainties in global trade. General Motors (GM) announced its consideration of relocating plant locations amidst concerns over auto tariffs.
Defense Secretary Pete Hegseth declared an 8% military spending reduction over the next five years. Military AI company Palantir (PLTR) immediately saw a 10% stock drop and an additional 3% decline in after-hours trading.
Earnings season continues on Thursday with Walmart (WMT), which is projected to exceed analysts' optimistic expectations.
Morgan Stanley strategists have shifted their perspective on Chinese stocks, anticipating a rise driven by technological advancements, particularly in the field of AI.