US Stock Futures Edge Lower After Market Hits Record Highs
US stock futures retreated on Thursday after the S&P 500 (^GSPC) notched a record high for the second consecutive day. Investors weighed the latest indications from the Federal Reserve that rate cuts remain unlikely in the near term.
Futures Contracts Decline
S&P 500 futures (ES=F) shed 0.3%, while Nasdaq 100 futures (NQ=F) retreated 0.4%. Dow Jones Industrial Average futures (YM=F) declined 0.2%.
Fed Minutes Signal Interest Rate Pause
The Federal Reserve released minutes from its January meeting on Wednesday, revealing support among officials for pausing interest rate cuts. Citing President Trump's tariffs and mass deportations of migrants, they expressed concerns about potential inflationary pressures.
Global Trade Uncertainties Persist
Trump's tariffs continue to cast a cloud over global trade, raising fears of escalation. General Motors (GM) indicated it may consider relocating its plant locations as auto tariffs loom.
Military Spending Cuts
Defense Secretary Pete Hegseth announced an 8% reduction in military spending over the next five years. The announcement weighed on military AI company Palantir (PLTR), with its stock dropping 10% on the news and sinking further in after-hours trading.
Earnings Season Continues
Walmart (WMT) is poised to release its earnings report on Thursday, with expectations that the retail giant will surpass Wall Street's elevated targets.
Key Economic Data and Events
- Initial jobless claims (week ending Feb. 15)
- Philadelphia Fed business outlook (February)
- Leading index (January)
Notable Earnings
- Alibaba Group (BABA)
- Block (XYZ)
- Booking Holdings (BKNG)
- Rivian (RIVN)
- Shake Shack (SHAK)
- Unity (U)
- Texas Roadhouse (TXRH)
- Dropbox (DBX)