U.S. Stock Futures Edge Lower as Fed Rate Cut Hopes Recede
U.S. stock futures opened slightly lower on Thursday after the S&P 500 hit a record high for the second consecutive day. Investors are assessing the latest indication from the Federal Reserve that interest rate cuts are unlikely in the near term.
Futures for the S&P 500 (ES=F) were down 0.25%, while the tech-heavy Nasdaq 100 (NQ=F) futures fell 0.26%. The Dow Jones Industrial Average futures (YM=F) retreated 0.22%.
The Federal Reserve released minutes from its January meeting on Wednesday. Officials indicated support for a pause in rate cuts, citing concerns over President Donald Trump's tariffs and mass deportations of migrants, which could potentially stoke inflation.
Trump's tariffs continue to create uncertainty in the global trade landscape. General Motors (GM) announced that it may relocate plant facilities in response to impending auto tariffs.
Meanwhile, Defense Secretary Pete Hegseth announced a planned 8% reduction in military spending over the next five years. The markets reacted negatively, sending shares of military AI firm Palantir (PLTR) down 10% in regular trading and a further 3% in after-hours trading.
Earnings season continues on Thursday, with Walmart (WMT) expected to report results that may exceed Wall Street's expectations for the retail giant.