US Future Markets Drop as S&P 500 Sets Record High
After the S&P 500 (^GSPC) reached a record high for the second consecutive day, US future markets experienced a decline. Investors considered the latest indications that the Federal Reserve is unlikely to cut rates soon.
Futures for the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) fell around 0.1%.
Federal Reserve Minutes Suggest Pause in Rate Cuts
The Federal Reserve released minutes from its January meeting on Wednesday. Officials expressed support for halting interest rate cuts, citing factors such as President Donald Trump's tariffs and mass deportations of migrants that could increase inflation.
Trump's tariffs continue to impact global trade. General Motors (GM) announced it may relocate its plant locations as auto tariffs come into effect.
Military Spending Cut Impacts Palantir
Meanwhile, Defense Secretary Pete Hegseth announced an 8% reduction in military spending over the next five years. This news sent shockwaves through the markets, particularly affecting military AI firm Palantir (PLTR). Its stock plunged 10% initially, followed by a further 3% loss in after-hours trading.
Earnings Season Continues with Walmart
Earnings season continues on Thursday with Walmart (WMT) expected to report results that surpass Wall Street's high expectations for the retail giant.
Morgan Stanley Reverses View on Chinese Market
Morgan Stanley (MS) strategists have adopted an optimistic outlook on Chinese stocks, reversing their previous bearish stance. This follows a trend of Wall Street support, forecasting a rise driven by tech advancements, particularly in AI.