Category: Market Summary

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.

U.S. equity futures moved lower on Friday as investors weighed the growing likelihood that Kevin Warsh could be named the next chair of the Federal Reserve. While strong corporate news from Apple offered some reassurance, a pullback in precious metals and lingering uncertainty around monetary policy kept risk appetite in check. Political nerves also eased slightly after signs emerged that another U.S. government shutdown has been avoided.

Apple posts standout iPhone growth and upbeat guidance

Apple (NASDAQ:AAPL) delivered a strong set of results for its fiscal first quarter, comfortably beating market expectations on both revenue and profit. The holiday period proved especially strong, with iPhone sales jumping 23.3% year on year to $85.27bn, marking the fastest quarterly growth in more than four years and the biggest increase since late 2021.

Demand for the latest iPhone 17 lineup, particularly higher-end Pro models, helped Apple lift its global smartphone market share to about 20% in 2025, up from 18% the year before. Looking ahead, the company forecast revenue growth of up to 16% for the March quarter, driven by resilient iPhone demand, a rebound in China and accelerating momentum in India. Operating expenses are expected to rise modestly to between $18.4bn and $18.7bn.

Despite the strong outlook, Apple warned that supply constraints remain an issue. “We’re currently constrained. And at this point, it’s difficult to predict when supply and demand will balance,” CEO Tim Cook said, adding, “we’re seeing less flexibility in supply chains than normal, partly because of our increased demand that I just spoke about.” Ongoing shortages of memory chips continue to limit production across the industry.

U.S. futures slip as caution returns

Wall Street futures traded lower as investors adopted a more defensive stance ahead of the anticipated Fed announcement. By early trading, S&P 500 futures were down around 0.8%, Nasdaq 100 futures had fallen close to 0.9% and Dow futures were lower by a similar margin.

The previous session ended mixed, with the S&P 500 and Nasdaq Composite under pressure following post-earnings weakness in Microsoft (NASDAQ:MSFT), while the Dow Jones Industrial Average edged higher. On a weekly basis, the S&P 500 and Nasdaq remain modestly higher, while the Dow is slightly in negative territory.

Attention is also turning to another heavy earnings day, with results due from Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), American Express (NYSE:AXP), Verizon (NYSE:VZ), Regeneron Pharmaceuticals (NASDAQ:REGN) and Aon (NYSE:AON).

Kevin Warsh seen as front-runner for Fed role

President Donald Trump said late Thursday that he will soon announce his nominee to succeed Jerome Powell as Federal Reserve chair, intensifying speculation around former Fed governor Kevin Warsh. “A lot of people think that this is somebody that could have been there a few years ago,” Trump said. “It’s going to be somebody that is very respected, somebody that’s known to everybody in the financial world.”

Those comments have been widely interpreted as pointing to Warsh, who narrowly missed out on the role in 2017. Reports indicate Warsh visited the White House this week, and multiple media outlets have said the administration is preparing to nominate him. Warsh is generally viewed as supportive of lower interest rates and broadly aligned with Trump’s policy preferences, while still seen as a relatively mainstream choice.

Trump has repeatedly criticised Powell for not cutting rates more aggressively, sparking concerns about central bank independence. Those concerns were heightened earlier this month when Powell suggested a criminal investigation into a Federal Reserve renovation project was politically motivated.

Last-minute deal averts government shutdown

Political risk eased after lawmakers reached a late-night agreement to prevent another federal government shutdown. The White House and Senate Democrats agreed to move forward with a broad package of spending bills, while temporarily separating funding for the Department of Homeland Security and extending it at current levels for two weeks.

Saturday had been the deadline to pass five spending bills needed to keep large parts of the government running. The compromise is seen as buying time for further negotiations, particularly around immigration enforcement, following renewed scrutiny after the deaths of U.S. citizens Alex Pretti and Renee Good in Minneapolis.

Gold, silver and oil retreat after sharp rallies

Commodities pulled back after recent surges. Gold prices fell sharply from record highs after expectations of a less dovish Fed chair boosted the U.S. dollar. Spot gold dropped 3.1% to $5,184.26 an ounce, while April futures fell 4.1% to $5,151.24. Even after the pullback, gold remains up more than 20% so far in January, on track for a sixth consecutive monthly gain and its strongest monthly rise since 1982.

Other precious metals also cooled after a volatile week, with spot silver sliding 7.3% and platinum down 8.5%. Oil prices eased after a three-day rally, though both Brent and WTI remained on course for weekly gains of more than 5% amid concerns that potential U.S. military action against Iran could disrupt supply. Brent fell to around $68 a barrel, while WTI slipped to about $64.

Markets are also watching the upcoming OPEC+ meeting on Sunday, where the group is widely expected to keep output unchanged after pausing production increases earlier this year amid concerns about oversupply and weakening global demand.