US Futures Tumble on Fed Minutes, Trade Concerns
US future markets declined after the S&P 500 (^GSPC) reached consecutive record highs. Investors weighed the latest signals from the Federal Reserve (Fed) indicating a pause in interest rate cuts.
Futures tied to the S&P 500 (ES=F) fell 0.3%, Nasdaq futures (NQ=F) declined 0.5%, while Dow Jones futures (YM=F) dipped 0.2%.
The Fed released minutes from its January meeting, revealing officials' support for pausing rate cuts. They cited concerns over President Donald Trump's tariffs and potential inflation pressures.
Trump's tariffs have exacerbated global trade tensions. As auto tariffs loom, General Motors (GM) indicated it might relocate plant locations.
Separately, Defense Secretary Pete Hegseth announced an 8% military spending cut over the next five years. This news negatively impacted military AI company Palantir (PLTR), whose stock dropped 10% with an additional 3% loss in after-hours trading.
Earnings season continues on Thursday with Walmart (WMT) set to report results that may surpass Wall Street's high expectations.