US Stock Futures Dip as Investors Eye Fed Minutes, Trade Tensions
US future markets declined after the S&P 500 reached record highs for two consecutive days. Investors analyzed the latest indications from the Federal Reserve, which suggest no imminent rate cuts.
Futures linked to the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) showed a 0.1% decrease.
The Federal Reserve released minutes from its January meeting on Wednesday, revealing officials' support for a pause in interest rate cuts. They cited President Donald Trump's tariffs and the deportation of migrants as potential inflationary factors.
Trump's tariffs continue to impact global trade, raising concerns. General Motors (GM) announced the possibility of relocating its manufacturing facilities as auto tariffs loom.
Meanwhile, Defense Secretary Pete Hegseth announced an 8% cut in military spending over the next five years. The markets reacted negatively, particularly for military AI company Palantir (PLTR), whose stock plunged 10% on the news and later dropped 3% in after-hours trading.
Earnings season continues on Thursday with Walmart (WMT) expected to surpass high Wall Street expectations.
Morgan Stanley strategists have shifted their perspective on Chinese stocks, becoming more positive. This marks a reversal from their previous bearish forecast and is part of a trend of Wall Street analysts predicting growth driven by technological advancements in China, particularly in AI.