S&P 500 Futures Dip as Fed Signals No Rate Cuts Soon
US future markets declined after the S&P 500 (^GSPC) reached another record high, as investors processed the Federal Reserve's indication of an unlikely interest rate reduction in the near future.
Futures tied to the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) moved 0.1% lower.
The Federal Reserve released minutes from its January meeting on Wednesday, revealing officials' support for maintaining interest rates. They cited President Trump's tariffs and immigration policies as potential drivers of inflation.
Trump's trade policies continue to create uncertainty in global markets. In anticipation of auto tariffs, General Motors (GM) announced the possibility of relocating its plants.
Defense Secretary Pete Hegseth disclosed an 8% reduction in military spending over the next five years. The announcement negatively impacted military AI company Palantir (PLTR), with its stock dropping 10% on the news and a further 3% in after-hours trading.
Earnings season continues on Thursday, with Walmart (WMT) set to release results that are anticipated to surpass Wall Street's expectations.