S&P 500, Dow Jones, and Nasdaq Futures Decline as Fed Meetings Take Center Stage

The US futures markets took a hit after the S&P 500 (^GSPC) achieved a record high for the second consecutive day, while investors processed the recent indication that the Federal Reserve is not expected to lower interest rates soon.

Futures related to the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) fell by 0.1%.

Minutes from the Federal Reserve’s January meeting were released on Wednesday, indicating officials were in favor of holding off on interest rate cuts, attributing concerns to President Donald Trump’s tariffs and mass migration deportations that could drive inflation higher.

Trump’s tariffs are continuing to shape the global trade landscape. As discussions around auto tariffs increase, General Motors (GM) has indicated it may consider relocating its manufacturing plants.

In related news, Defense Secretary Pete Hegseth announced an 8% reduction in military spending over the next five years, which negatively impacted the military-focused AI company Palantir (PLTR). Following the announcement, its stock plummeted by 10% and declined another 3% in after-hours trading.

As the earnings season continues, Walmart (WMT) is anticipated to report results that exceed Wall Street’s expectations for the retail giant on Thursday.