US future markets slumped on open after the S&P 500 (^GSPC) reached a record high for the second day in a row, and investors received further signs the Federal Reserve is unlikely to cut rates soon.

Futures attached to the S&P 500 (ES=F), Nasdaq (NQ=F), and Dow Jones (YM=F) drifted 0.1% down.

The Federal Reserve released minutes from its January meeting on Wednesday. Officials expressed support for a pause in interest rate cuts and cited President Donald Trump’s tariffs and mass deportations of migrants as factors that could push inflation higher.

Trump’s tariffs continue to push global trade into unknown territory. As auto tariffs come into view, General Motors (GM) announced it may look at relocating its factory into the US.

Meanwhile, Defense Secretary Pete Hegseth announced an 8% cut in military spending over the next five years. The markets responded to the announcement with an instant hit to military AI business Palantir (PLTR). Its stocks saw a 10% drop on the news and then slumped 3% more in after-hours trading.

Earnings season continues Thursday with Walmart (WMT) expected to release results that beat Wall Street’s high expectations.