Category: Market Summary

U.S. equity futures edged higher, even as a sharp downturn in software stocks continued to weigh on market sentiment and investors braced for earnings from the biggest technology names. Attention is firmly on Google parent Alphabet (NASDAQ:GOOG), which is set to report quarterly results after the market opens, with its artificial intelligence spending plans expected to be a key focus. Elsewhere, reports said Federal Reserve Governor Stephen Miran has stepped down from his role as a White House economic adviser, while fresh data on U.S. services activity is due and gold prices have climbed back toward $5,100 an ounce.

Futures edge up despite tech sell-off

U.S. stock futures traded modestly higher early Wednesday as markets balanced renewed pressure on AI-linked software shares against anticipation of results from mega-cap technology companies.

By 02:53 ET, Dow futures were up 134 points, or 0.3%, S&P 500 futures had added 19 points, or 0.3%, and Nasdaq 100 futures were higher by 57 points, or 0.2%.

Wall Street closed sharply lower in the previous session, led by steep declines in AI heavyweights Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), both of which fell close to 3%. Sentiment toward software stocks has weakened in recent days, as investors grow increasingly concerned about rising competition from newly launched AI models.

Those worries intensified after artificial intelligence firm Anthropic unveiled a new legal-analysis tool, triggering heavy selling in publishing and data-related stocks such as Thomson Reuters (NYSE:TRI) and LegalZoom (NASDAQ:LZ). The sell-off quickly spread across the broader software sector, dragging down names including PayPal (NASDAQ:PYPL) and Expedia Group (NASDAQ:EXPE), each of which dropped more than 10%. According to the Wall Street Journal, two S&P indices tracking software, financial data and exchange companies collectively lost around $300 billion in market value.

“[T]he defining development was the collapse in technology stocks, as investors increasingly view AI as a net negative. Companies heavily exposed to aggressive infrastructure investment are no longer benefiting, while concerns about AI-driven disruption and displacement are eroding large portions of the market,” analysts at Vital Knowledge said in a note.

Not all shares were under pressure, however. Walmart (NYSE:WMT) stood out after a surge in its stock pushed the retailer’s market capitalization above $1 trillion for the first time, supported by continued market-share gains among price-conscious consumers.

Alphabet in the spotlight

With volatility rippling through the software sector, markets are now turning their attention to Alphabet’s earnings report later in the day. Investors are expected to closely scrutinize the group’s costly push into artificial intelligence, including multibillion-dollar investments in data centers and specialized chips.

Alphabet shares rallied around 29% in the final quarter of 2025, driven by positive reception of its latest Gemini AI model and a partnership with Apple to enhance the iPhone maker’s Siri voice assistant. Analysts cited by Reuters have suggested that Alphabet has now taken the lead in the race to develop and commercialize AI technologies, overtaking competitors such as Microsoft.

“Google sentiment is (justifiably) very bullish, as the company’s core advertising businesses continue to deliver strong results while it emerges as the best-positioned player across the AI ecosystem,” Vital Knowledge analysts said. They cautioned, however, that it remains unclear whether strong earnings will stabilize broader AI sentiment or instead amplify concerns about the resilience of the ecosystem surrounding rivals like OpenAI.

Further insight into the technology landscape may come on Thursday, when Amazon (NASDAQ:AMZN) is scheduled to report results. Outside the tech sector, pharmaceutical giant Eli Lilly (NYSE:LLY), which has made significant bets on weight-loss treatments, is also among the notable companies reporting ahead of the U.S. market open.

Reports: Miran exits White House adviser role

Media reports indicated that Federal Reserve Governor Stephen Miran has resigned from his position as a White House economic adviser, fulfilling a commitment he previously made to the U.S. Senate.

The move allows Miran—appointed last year by President Donald Trump to temporarily fill a vacancy on the Federal Reserve Board through January 31—to remain at the central bank until a successor is confirmed.

“I promised the Senate that if I remained on the Board beyond January, I would formally depart the Council,” Miran wrote in a resignation letter cited by several outlets, adding that it was “important to honor my word.”

Since joining the Fed, Miran has been a vocal proponent of aggressive interest-rate cuts, frequently diverging from the views of other policymakers. His stance has aligned with Trump’s calls for rapid rate reductions to stimulate the economy, drawing criticism from some Democratic senators who have urged his “immediate” resignation from the Fed board.

U.S. services data ahead

Last month, the Federal Reserve opted to keep interest rates unchanged in a range of 3.5% to 3.75%, despite dissent from Miran and Fed Governor Christopher Waller. While there are signs of softening in the labor market, inflation has remained above the Fed’s 2% target, reducing the urgency to resume the aggressive rate-cutting cycle seen in 2025.

With the monthly jobs report delayed earlier this week, investors will focus on other indicators, including January data on U.S. services activity. The Institute for Supply Management’s non-manufacturing purchasing managers’ index is expected to come in at 53.5, down from 54.4 previously. Readings above 50 signal expansion.

Gold climbs back toward $5,100

Gold prices moved higher on Wednesday, approaching $5,100 an ounce, as renewed tensions between the United States and Iran boosted demand for safe-haven assets.

The precious metal extended gains after rebounding sharply from earlier losses in the prior session.

Safe-haven demand was reinforced by reports that the U.S. shot down an Iranian drone that approached a U.S. aircraft carrier in the Arabian Sea. Separately, Iranian gunboats were seen near a U.S.-linked tanker in the Strait of Hormuz.

These developments cast doubt on earlier comments from Tehran and Washington suggesting talks would take place on Friday. News of the planned discussions had previously eased market anxiety and weighed on gold prices.

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.