Category: Market Summary

U.S. equity futures were trading higher early Tuesday, pointing to a firmer open on Wall Street and suggesting that stocks could build on the gains recorded in the previous session.

Early momentum is being fueled in part by a sharp rally in Palantir Technologies (NASDAQ:PLTR). Shares of the AI-driven software company were up about 11.7% in premarket trading after the company reported fourth-quarter results that beat expectations and issued an upbeat outlook.

Mining shares are also expected to see early gains, as gold and silver prices have rebounded sharply following a recent selloff, improving sentiment across the materials space.

That said, investor enthusiasm could be somewhat restrained as attention turns to Washington, where the House of Representatives is scheduled to vote on a funding measure aimed at ending the partial government shutdown.

The shutdown has already led the Labor Department to postpone the release of the job openings report due this morning, as well as the closely watched monthly employment report that had been set for release on Friday.

After a mixed showing last week, U.S. stocks finished mostly higher on Monday. All three major indices advanced, with the Dow leading the way. Although the averages pulled back from their session highs late in the day, they remained solidly in positive territory. The Dow gained 515.19 points, or 1.1%, to close at 49,407.66, the Nasdaq rose 130.29 points, or 0.6%, to 23,592.11, and the S&P 500 added 37.41 points, or 0.5%, to 6,976.44.

The rally was underpinned by fresh data from the Institute for Supply Management, which showed U.S. manufacturing activity unexpectedly returned to growth territory in January for the first time in a year. The ISM manufacturing PMI climbed to 52.6 from 47.9 in December, well above the 50 mark that signals expansion and comfortably ahead of forecasts calling for 48.5.

The stronger-than-expected data helped investors look past lingering trade frictions and renewed uncertainty around the path of U.S. monetary policy. Market sentiment was also lifted by signs of easing tensions between the U.S. and Iran, following reports that Tehran is open to renewed negotiations with Washington over its nuclear program.

Stocks received additional support after President Donald Trump said on Truth Social that the U.S. had reached a trade agreement with India. Following a conversation with Indian Prime Minister Narendra Modi, Trump said reciprocal U.S. tariffs on Indian goods would be reduced to 18% from 25%, while India would reportedly cut both tariff and non-tariff barriers on U.S. products.

Despite the generally positive tone, traders appeared hesitant to take larger positions ahead of Friday’s release of the Labor Department’s monthly jobs report. The report is expected to show that U.S. payrolls increased by 70,000 in January, following a gain of 50,000 in December, and could influence expectations for interest rates.

From a sector perspective, airline stocks were among the strongest performers, with the NYSE Arca Airline Index jumping 4.3%. Computer hardware stocks also rallied, as reflected in a 4.2% rise in the NYSE Arca Computer Hardware Index.

Banks, semiconductor shares and retailers also posted solid advances, while energy stocks lagged the broader market amid a sharp drop in crude oil prices.

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.

U.S. equity index futures are pointing to a softer start to the trading week, with markets under pressure after last week’s mixed performance.

A key drag on sentiment is a pullback in Nvidia (NASDAQ:NVDA), with shares of the AI bellwether down around 1.6% in premarket trading. The stock’s decline is weighing on broader tech sentiment and could ripple across the major indexes.

The slide follows a Wall Street Journal report suggesting Nvidia’s proposed investment of up to $100 billion in OpenAI — aimed at supporting the training and deployment of its latest artificial intelligence models — has stalled. The report, citing people familiar with the matter, said internal concerns have emerged at Nvidia regarding the structure and execution of the deal.

Beyond Nvidia, investors remain cautious amid unresolved trade disputes and renewed uncertainty over the future path of U.S. monetary policy, reinforcing a risk-averse mood.

Trading volumes may stay relatively light ahead of Friday’s closely watched U.S. employment report from the Labor Department. Economists expect payroll growth of about 70,000 in January, up from 50,000 in December, a data point that could influence expectations for interest rates.

Wall Street ended Friday mostly lower after a volatile session that maintained a negative bias throughout the day. Following a partial rebound from an early selloff on Thursday, all three major indexes closed firmly in the red.

The Nasdaq led the declines, falling 223.3 points, or 0.9%, to 23,461.8. The Dow Jones Industrial Average dropped 179.1 points, or 0.4%, to 48,892.5, while the S&P 500 slipped 30 points, or 0.4%, to 6,939.0.

On a weekly basis, performance was mixed. The S&P 500 eked out a 0.3% gain, while the Nasdaq fell 0.2% and the Dow declined 0.4%.

Recent losses were partly driven by renewed inflation worries after data showed producer prices rose much faster than expected in December. The Labor Department reported a 0.5% monthly increase in producer prices, compared with forecasts for a 0.2% rise, while the annual rate held at 3.0%, defying expectations for a slowdown.

Political developments also weighed on sentiment. President Donald Trump renewed tariff threats, including a proposed 50% duty on aircraft sold in the U.S. by Canada over certification disputes involving Gulfstream jets. He also signed an executive order targeting goods from countries that sell or supply oil to Cuba.

Markets are also digesting Trump’s announcement that he plans to nominate former Federal Reserve governor Kevin Warsh to succeed Jerome Powell as Fed chair.

“While investors may be reassured that a familiar former Fed official is in line to take the helm, attention is likely to shift toward concerns that policy may be less accommodative than previously assumed,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

Sector performance on Friday reflected the risk-off tone, with gold miners among the worst performers after a sharp drop in bullion prices. Semiconductor and hardware stocks also came under heavy pressure, amplifying losses in the tech-heavy Nasdaq.

Steelmakers, airlines, biotech and housing-related stocks likewise posted notable declines, underscoring the broad-based nature of the pullback.

U.S. equity futures were under pressure early Monday, with investor sentiment shaken by another sharp leg lower in gold and silver ahead of a packed week of major earnings releases and economic data. Bitcoin also moved lower after dropping below the $80,000 level over the weekend. Meanwhile, Oracle (NYSE:ORCL) set out fresh capital-raising plans, and speculation intensified around potential leadership changes at Walt Disney (NYSE:DIS) as it prepares to report quarterly results.

Futures point to weaker open

Futures tied to the main U.S. equity benchmarks indicated a softer start to the week, extending Friday’s declines.

By 03:11 ET, Dow futures were down 323 points, or 0.7%, S&P 500 futures had fallen 62 points, or 0.9%, and Nasdaq 100 futures were lower by 291 points, or 1.1%.

Markets are bracing for a flood of quarterly earnings reports alongside the release of the latest U.S. monthly employment data. Together, these updates could offer fresh insight into the health of the U.S. economy and test the resilience of a bull market that has now entered its fourth year.

Investors are also weighing the implications of President Donald Trump’s nomination of Kevin Warsh as the next chair of the Federal Reserve. If confirmed by the Senate, Warsh would bring with him long-held views advocating a monetary policy “regime change,” adding another layer of uncertainty to the outlook for interest rates.

Gold and silver remain under heavy pressure

The sharp selloff in precious metals continued to weigh on risk appetite. Gold and silver extended the historic declines seen on Friday, with Asian equity markets particularly affected by the move.

Following a near-10% plunge late last week, spot gold fell a further 4.9% to $4,626.80 per ounce by 03:27 ET, well below the $5,000 level reached only days earlier. Silver also remained under strain, although it stabilised somewhat around $79 an ounce by 03:30 ET after recent steep losses.

Analysts said the downturn reflects a combination of a strengthening U.S. dollar and widespread profit-taking after months of strong gains. Concerns have also grown around Warsh’s longer-term stance on inflation and monetary tightening.

“Warsh is considered the toughest on inflation among the candidates for the role, lessening the likelihood of a dramatic easing of monetary policy. This triggered a wave of selling, with gold suffering its biggest slide in four decades,” ANZ analysts wrote in a note.

Bitcoin extends its decline

The risk-off tone spilled into digital assets, with Bitcoin (COIN:BTCUSD) falling more than 2% to $76,892.4.

The world’s largest cryptocurrency slipped below $80,000 on Saturday, adding to losses from Friday. Some investors are concerned that a push by Warsh for a smaller Federal Reserve balance sheet could reduce liquidity across financial markets.

Historically, expansive central bank balance sheets have supported cryptocurrencies by injecting liquidity into the system, benefiting more speculative assets. The latest move marks another leg lower for Bitcoin after it hit a record high last October. Since then, its price has dropped by roughly one-third, reversing gains that had been fuelled by expectations of stronger cash flows and a more favourable regulatory environment under Trump.

Reflecting the broader volatility, Jonas Goltermann, deputy chief markets economist at Capital Economics, said recent sessions have been “unusually hectic […] for financial markets.”

Oracle sets out capital-raising strategy

Late Sunday, Oracle said it plans to raise substantial new funding in 2026 to expand its artificial intelligence and cloud computing infrastructure, as demand for capacity continues to rise.

The company expects to raise between $45 billion and $50 billion in gross proceeds through a combination of debt and equity financing. Around half of the total will come from equity-linked instruments and common stock.

Oracle said its debt funding will consist of a single issuance of investment-grade senior unsecured bonds in early 2026, with no additional debt planned thereafter.

“The most notable part of the announcement is that approximately half this amount will come via the issuance of equity-linked securities, including a $20B ATM (at-the-market) common equity program,” analysts at Vital Knowledge said in a note.
“As far as the overall AI industry, Oracle’s $20 [billion at-the-market] is the first time a tech giant has been forced to raise equity since the AI boom kicked off and if this marks the start of a trend whereby the industry becomes a bit more fiscally prudent, it could mean a slightly slower pace of aggregate spending.”

Disney earnings and succession questions

On the earnings calendar, Walt Disney is set to report before the opening bell on Wall Street on Monday.

While investors will focus on performance across its streaming business, theme parks and film studios, leadership succession could dominate attention. Media reports say CEO Bob Iger has told associates he plans to step back from day-to-day management and leave the role before his contract expires on December 31.

Disney’s board is reportedly expected to meet soon to vote on a successor, with experiences division head Josh D’Amaro widely viewed as a leading contender to take over.