U.S. equity futures were trading higher ahead of a packed week of corporate earnings, with markets digesting a series of major headlines. Elon Musk’s SpaceX has agreed to acquire xAI in a landmark transaction valuing the combined group at more than $1 trillion, while Palantir (NASDAQ:PLTR) reported record quarterly revenue, lifting its shares in after-hours trading. Investor mood has also improved following a rebound in gold prices after a sharp selloff, even as oil prices drift lower on signs of easing tensions between Washington and Tehran.
Futures move higher
Stock futures in the U.S. pointed upward early Tuesday as investors positioned for a heavy flow of results. By 02:33 ET, Dow futures were up 34 points, or 0.1%, S&P 500 futures had gained 19 points, or 0.3%, and Nasdaq 100 futures were ahead by 143 points, or 0.6%.
Wall Street closed higher on Monday after a choppy session, helped by renewed strength in AI-related semiconductor stocks. Alphabet shares hit a fresh all-time high, while Amazon added around 1.5%. Both companies are scheduled to release earnings later this week.
Sentiment was further supported by President Donald Trump’s decision to cut U.S. import tariffs on goods from India to 18%, down from levels that had previously been the highest applied to any U.S. trading partner.
In Washington, the House of Representatives is set to vote later today on legislation aimed at ending a partial government shutdown. The shutdown has already delayed key economic releases, including the monthly nonfarm payrolls report that had been due on Friday. Separately, data showed U.S. factory activity expanded last month for the first time in a year.
SpaceX strikes deal for xAI
SpaceX has agreed to acquire xAI in a transaction valuing the combined business at roughly $1.25 trillion, underscoring Elon Musk’s ambition to build scale across sectors ranging from space exploration to artificial intelligence and robotics.
SpaceX, known for its reusable rockets and vast satellite constellation, and xAI, the company behind the AI assistant Grok, rank among the world’s most closely watched private firms. A long-anticipated SpaceX IPO could take place as soon as this year, while xAI was valued at $230 billion in a fundraising round in January. Bloomberg News reported that shares in the merged entity are expected to be priced at $526.59 each.
Palantir delivers record quarter
On the earnings front, Palantir shares jumped in extended trading before giving back some of the initial gains. The data analytics company posted record revenue of $1.41 billion for the final quarter of 2025, driven by strong demand from both government agencies and commercial clients for its AI-enabled software.
Revenue surged 70% year on year, beating Wall Street expectations, while net income reached a record $609 million. Despite benefiting from enthusiasm around artificial intelligence, Palantir’s stock has underperformed so far this year amid a broader pullback in software names. The company has also faced scrutiny over its work with the Trump administration, particularly related to immigration enforcement.
Elsewhere on the earnings calendar, Pfizer is due to report before the U.S. market opens, while Advanced Micro Devices is scheduled to release results after the close.
Gold rebounds
In commodities, gold prices rose as the metal steadied after two days of steep losses, helping ease investor anxiety following a bout of heavy volatility. Spot gold jumped 5.8% to $4,931.60 an ounce, while April gold futures climbed 6.5% to $4,954.04.
Gold had fallen to around $4,400 an ounce on Monday, nearly $1,200 below last week’s record high. The pullback followed profit-taking after President Trump nominated former Federal Reserve governor Kevin Warsh as the next Fed chair, reducing uncertainty and cooling some safe-haven demand. Warsh is seen as less dovish than markets had anticipated, and gold typically performs better in a low-rate environment.
Despite the correction, analysts at ING said the underlying case for gold remains intact. “The structural drivers — elevated geopolitical risk, macro uncertainty, diversification flows and ongoing central bank buying — remain firmly in place,” wrote analysts Warren Patterson and Ewa Manthey. Silver futures, which suffered their steepest one-day drop on record on Friday, also rebounded sharply.
Oil prices ease again
Oil prices slipped for a second straight session, as signs of de-escalation between the U.S. and Iran reduced the geopolitical risk premium in crude markets. Brent futures fell 0.6% to $65.91 a barrel, while U.S. West Texas Intermediate crude declined 0.5% to $61.80.
Both benchmarks had dropped more than 4% in the previous session after President Trump said Iran was “seriously talking” with Washington, signalling a potential easing of tensions with the OPEC member. Reuters has reported that Iran and the U.S. are expected to resume nuclear talks on Friday in Turkey.
Additional pressure came from a firmer U.S. dollar, with the dollar index hovering near a one-week high, weighing on demand for dollar-denominated oil from overseas buyers.
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