In Washington, lawmakers moved to end a partial government shutdown, with a final vote expected Tuesday.
- U.S. stock futures ticked higher late Monday on strong earnings and AI optimism.
- Palantir and Teradyne lifted sentiment, while uncertainty around a reported OpenAI-Nvidia deal weighed on AI stocks.
- Asian markets rebounded, and investors awaited key U.S. data including Job Openings and services PMI.
U.S. stock futures were modestly higher early Tuesday, tracking Wall Street’s strong start to the new trading month as upbeat earnings and renewed optimism around AI helped lift investor appetite.
As of 12.34 a.m. ET, Nasdaq 100 futures were up 0.5%, while S&P 500 futures gained 0.2%. Dow Jones futures edged up 0.05%.
On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF Trust (SPY) was ‘bearish’, while sentiment toward the Invesco QQQ Trust (QQQ) was ‘neutral’ and sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) was ‘bullish’, all amid ‘high’ message volume.
Market Drivers
In the regular session, the Dow Jones Industrial Average jumped about 515 points, or 1%, while the S&P 500 advanced 0.5% and the Nasdaq Composite gained 0.6%.
Investor confidence was supported by strong earnings in the technology and automation space. Palantir Technologies posted strong fourth-quarter results and issued upbeat guidance, while Teradyne delivered a first-quarter outlook that topped expectations.
However, uncertainty around a reported OpenAI-Nvidia deal weighed on sentiment. Nvidia shares fell about 2.9% after a Wall Street Journal report raised questions about the investment, prompting volatility across the AI ecosystem. OpenAI CEO Sam Altman said the company hopes to remain a “gigantic customer” of Nvidia, while CEO Jensen Huang played down the report, saying any investment was never a firm commitment.
Meanwhile, the S&P 500 energy sector dropped about 2% as oil prices slid after U.S. President Donald Trump said Iran was “seriously talking” with Washington, comments that hinted at de-escalation and eased fears of supply disruptions.
On the macroeconomic front, U.S. factory activity expanded for the first time in a year in January. In Washington, the House moved to lift a partial government shutdown that began over the weekend, with a final vote expected Tuesday, while the Bureau of Labor Statistics said the January jobs report will not be released on Friday because of the shutdown.
Ryan Detrick, chief market strategist at Carson Group, said the market’s positive start to the year could help support equities in the months ahead, while cautioning that February has historically been prone to volatility, which he described as a potential “banana peel” period even during strong market cycles.
Trending Stocks To Watch
Palantir Technologies (PLTR): Shares surged over 5% in extended trading after Palantir reported Q4 revenue of $1.41 billion, topping estimates, and EPS of $0.25, driven by strong U.S. government and commercial AI demand.
Teradyne (TER): The stock jumped more than 12% after-hours as the company posted Q4 revenue of $1.08 billion and EPS of $1.80, both well above expectations, and guided Q1 revenue to $1.15-$1.25 billion on strong AI-related demand.
Walt Disney (DIS): Shares moved slightly higher in extended trading after reporting Q1 revenue of $26 billion and adjusted EPS of $1.63, beating estimates, with streaming and parks performance offsetting higher content costs.
TeraWulf (WULF): The stock climbed more than 6% after-hours following the announcement of acquisitions that expand its power and digital infrastructure footprint, adding roughly 1.5 GW of capacity.
PayPal (PYPL): Shares edged marginally higher in extended higher ahead of earnings as investors weighed its AI-driven commerce push and recent Cymbio acquisition against ongoing checkout share losses.
Broader Markets
In broader markets, the yield on the benchmark 10-year U.S. Treasury note held around 4.27% on Tuesday. Brent crude slipped about 0.5% to around $65.90 a barrel, while U.S. West Texas Intermediate fell roughly 0.5% to near $61.80.
Gold and silver rebounded more than 2% on Tuesday after a sharp selloff over the past few days.
The MSCI Asia Pacific Index jumped 2.4%, marking its best session since the rebound following “Liberation Day” in April last year, when Trump announced sweeping tariffs.
Among the catalysts for the day are the Job Openings report, the S&P final U.S. services PMI, and the ISM services index.
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