US Stock Futures Slip After S&P 500 Reaches Record High
US stock futures saw a decline on Thursday, following back-to-back record highs for the S&P 500 (^GSPC). Investors are digesting the latest indications from the Federal Reserve that suggest interest rate cuts are unlikely in the near future.
Contracts on the S&P 500 (ES=F) fell 0.3%, while those on the Nasdaq 100 (NQ=F), which is heavily tilted towards tech companies, retreated 0.4%. Dow Jones Industrial Average futures (YM=F) moved 0.2% lower.
Fed Minutes Indicate Pause in Rate Cuts
The Federal Reserve released minutes from its January meeting on Wednesday. Officials expressed support for a pause in interest rate cuts, citing President Donald Trump's tariffs and mass deportations of migrants as potential inflationary pressures.
Trump's tariffs continue to create uncertainty in global trade. With auto tariffs looming, General Motors (GM) has raised the possibility of relocating manufacturing plants.
Defense Spending Cuts Hit Palantir
Secretary of Defense Pete Hegseth announced an 8% reduction in military spending over the next five years. The announcement had an immediate impact on Palantir (PLTR), a military AI company. Its stock plummeted 10% on the news and continued to decline by 3% in after-hours trading.
Earnings Season Continues
Thursday's earnings season will feature Walmart (WMT), which is anticipated to report results that surpass Wall Street's high expectations for the retail giant.