U.S. Futures Drop on Fed Minutes, Tariff Concerns
New York, NY – U.S. future markets declined Thursday after the S&P 500 (^GSPC) set a record high for the second consecutive session. Investors digested minutes from the Federal Reserve's January meeting, which signaled a pause in interest rate cuts.
Futures contracts for the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) retreated by approximately 0.25%.
The Fed minutes revealed that officials favored holding interest rates steady due to concerns about inflation. President Trump's tariffs and immigration policies were cited as potential inflationary pressures.
Trump's tariffs continue to disrupt global trade. General Motors (GM) announced it may relocate plants in response to the auto tariffs.
Meanwhile, Defense Secretary Pete Hegseth proposed an 8% reduction in military spending over the next five years. Palantir (PLTR), a military AI company, saw its stock price drop 10% on the news and declined further in after-hours trading.
Earnings season continues Thursday with Walmart (WMT) expected to report strong results, exceeding Wall Street expectations for the retail giant.