March Nasdaq 100 E-Mini futures (NQH26) are trending up +0.41% this morning as forecast-beating quarterly results and guidance from Palantir Technologies boosted sentiment.
Palantir Technologies (PLTR) surged over +11% in pre-market trading after the data analytics company posted upbeat Q4 results as well as issued Q1 and FY26 revenue guidance that smashed Wall Street expectations.
Also aiding sentiment, precious metals rebounded after a historic two-day selloff, with gold jumping more than +5% to move back above $4,900.
Investors now await a fresh batch of corporate earnings reports and remarks from Federal Reserve officials.
In yesterday’s trading session, Wall Street’s main stock indexes closed higher. Sandisk (SNDK) surged over +15% and was the top percentage gainer on the S&P 500 after CTBC Securities Investment Service Co. Ltd. initiated coverage of the stock with a Buy rating and a price target of $660. Also, chip stocks advanced, with Micron Technology (MU) and Intel (INTC) climbing more than +5%. In addition, Teradyne (TER) rose over +3% after Alethia Capital Limited initiated coverage of the stock with a Buy rating and $400 price target. On the bearish side, Walt Disney (DIS) slumped more than -7% and was the top percentage loser on the Dow after several analysts said the company’s Q2 guidance was disappointing.
Economic data released on Monday showed that the U.S. January ISM manufacturing index rose to 52.6, the highest since August 2022. Economists had forecast the figure would rise to 48.5.
“Manufacturing activity seems to be emerging from a cold winter,” said Brian Jacobsen at Annex Wealth Management. “We’ve seen signs of life before, only for manufacturing to dip again, but with new orders growing, maybe this revival is real.”
Following the manufacturing data, traders slightly pared expectations for Fed rate cuts. U.S. rate futures have priced in a 91.0% probability of no rate change and a 9.0% chance of a 25 basis point rate cut at the next central bank meeting in March. The next rate cut is expected to come in July.
Atlanta Fed President Raphael Bostic said on Monday, “We have so much momentum in the U.S. economy that the Fed needs to keep the policy rate in a mildly restrictive stance,” adding that he does not project any rate cuts in 2026.
On the trade front, President Trump said on Monday that the U.S. will cut the so-called reciprocal tariff on India to 18% from 25%. Mr. Trump also said that Prime Minister Narendra Modi agreed to stop purchases of Russian oil and buy more from the U.S. and “potentially” Venezuela. Bloomberg reported that the commitment would result in the removal of the extra 25% tariff on India tied to the oil purchases. Overall, the moves will reduce tariffs on many Indian goods from 50% to 18%. Additionally, Trump said that India will “move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO.”
Meanwhile, the partial U.S. government shutdown has entered its fourth day. The House Rules Committee easily moved the funding package forward in a party-line vote late Monday, setting it up for a floor vote on Tuesday. If the full House passes the funding package and President Trump signs it into law, the partial shutdown will come to an end.
The Bureau of Labor Statistics will not publish the January jobs report on Friday as scheduled due to the partial government shutdown. “The release will be rescheduled upon the resumption of government funding,” Emily Liddel, BLS associate commissioner for publications and special studies, said in a statement. The agency said the Job Openings and Labor Turnover Survey release for December, originally set for today, will also be rescheduled.
Fourth-quarter corporate earnings season rolls on, with investors anticipating fresh reports from major companies today, including Advanced Micro Devices (AMD), Merck & Co. (MRK), PepsiCo (PEP), Amgen (AMGN), and Pfizer (PFE). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year.
Market participants will also parse comments today from Richmond Fed President Tom Barkin and Fed Vice Chair for Supervision Michelle Bowman.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.290%, up +0.28%.
The Euro Stoxx 50 Index is up +0.25% this morning amid risk-on sentiment fueled by yesterday’s gains on Wall Street and a rebound in precious metals. Mining stocks outperformed on Tuesday, buoyed by a rebound in precious metals after a historic two-day selloff. Defense and bank stocks also gained ground. Preliminary data released on Tuesday showed that France’s annual inflation rate fell more than expected in January, increasing the likelihood that Eurozone inflation could remain below the European Central Bank’s target for longer this year. Separately, the ECB’s quarterly Bank Lending Survey showed that Eurozone banks tightened access to corporate credit last quarter and expect further tightening ahead amid economic uncertainty, partly linked to trade policies. “For firms, it was the first net tightening since the fourth quarter of 2023, driven by lending rates, collateral requirements, and other terms and conditions,” the ECB said. Policymakers at the central bank meet on Wednesday and Thursday and are expected to keep the deposit rate unchanged at 2.00%, with attention on any guidance regarding the rate outlook and remarks on the euro’s recent strength. In other news, France finally got a 2026 budget on Monday after two no-confidence motions failed, clearing the way for the legislation to pass. In corporate news, Amundi SA (AMUN.P.DX) rose over +5% after Europe’s largest asset manager posted higher-than-expected Q4 net inflows.
France’s CPI (preliminary) was released today.
The French January CPI fell -0.3% m/m and rose +0.3% y/y, weaker than expectations of -0.1% m/m and +0.6% y/y.
Asian stock markets today settled in the green. China’s Shanghai Composite Index (SHCOMP) closed up +1.29%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +3.92%.
China’s Shanghai Composite Index closed higher today, clawing back some of the previous session’s losses as sentiment improved after volatility in precious metals subsided. Construction machinery and defense stocks led the gains on Tuesday. Non-ferrous metal stocks also advanced after gold climbed above $4,900 as dip-buyers stepped in to end a two-day selloff. Meanwhile, Hong Kong-listed technology stocks sank, driving a key index to the edge of a bear market. The sudden decline followed rising investor concerns that the government may impose higher value-added taxes on internet firms after increasing taxes on telecommunications companies. In corporate news, Cambricon Technologies slumped over -9% after the AI chipmaker denied that it had shared any confidential revenue guidance at recent small-group meetings.
Japan’s Nikkei 225 Stock Index closed sharply higher and hit a new record high today, buoyed by a rebound in precious metals and strong earnings from the technology and financial sectors. Japanese equities also followed U.S. stocks higher as Wall Street was lifted by a strong manufacturing reading that underscored the resilience of the U.S. economy. In addition, risk appetite was bolstered by the U.S.-India trade deal and upcoming U.S.-Iran talks. Financial stocks led the gains on Tuesday, with Mizuho Financial Group climbing over +6% after Japan’s third-largest lender reported stronger-than-expected FQ3 profit and expanded its share buyback program. Technology stocks also rallied, led by gains in TDK Corp. and Kyocera Corp. after both companies posted upbeat quarterly earnings. Meanwhile, Japanese government bond yields rose on Tuesday as risk-on sentiment gained traction. In other corporate news, Sumitomo Electric Industries surged over +12% after raising its full-year income guidance. Investors are awaiting Japan’s December household spending data, scheduled for release on Friday, which will offer insight into the willingness of the nation’s consumers to spend. Attention will then turn to Japan’s Lower House election to be held on Sunday, February 8th. OCBC Group Research said in a note that opinion polls indicate the ruling coalition is on track to secure 300 of the 465 seats in the upcoming election, removing a key hurdle to Prime Minister Takaichi’s fiscal expansion plans. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.35% to 35.83.
Pre-Market U.S. Stock Movers
Palantir Technologies (PLTR) surged over +11% in pre-market trading after the data analytics company posted upbeat Q4 results as well as issued Q1 and FY26 revenue guidance that smashed Wall Street expectations.
Chip stocks are moving higher in pre-market trading, with Intel (INTC) rising over +3% and Advanced Micro Devices (AMD) gaining more than +1%.
Tesla (TSLA) advanced more than +1% in pre-market trading after Elon Musk said on Monday that SpaceX had acquired his AI startup xAI, ahead of a potential initial public offering of SpaceX this year. Tesla revealed a $2 billion investment in xAI during its Q4 earnings call.
Teradyne (TER) jumped over +22% in pre-market trading after the maker of test systems for semiconductors and robotics reported stronger-than-expected Q4 results and issued above-consensus Q1 guidance.
Rambus (RMBS) plunged more than -11% in pre-market trading after the semiconductor company gave disappointing Q1 product revenue guidance.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - February 3rd
Advanced Micro Devices (AMD), Merck & Co. (MRK), PepsiCo (PEP), Amgen (AMGN), Pfizer (PFE), Eaton Corporation (ETN), Chubb (CB), Emerson Electric Co. (EMR), TransDigm Group (TDG), Illinois Tool Works (ITW), Mondelez International (MDLZ), Enterprise Products Partners (EPD), Suncor Energy (SU), MPLX LP (MPLX), Marathon Petroleum (MPC), AMETEK (AME), W.W. Grainger (GWW), Chipotle Mexican Grill (CMG), Electronic Arts (EA), Corteva (CTVA), PayPal Holdings (PYPL), Take-Two Interactive Software (TTWO), Prudential Financial (PRU), Chunghwa Telecom (CHT), Archer-Daniels-Midland Company (ADM), Lumentum Holdings (LITE), Willis Towers Watson (WTW), Atmos Energy (ATO), Hubbell (HUBB), Veralto (VLTO), Broadridge Financial Solutions (BR), Banco de Chile (BCH), Amcor (AMCR), LATAM Airlines Group (LTM), Super Micro Computer (SMCI), Pentair (PNR), ATI Inc. (ATI), Jacobs Solutions (J), Mueller Industries (MLI), Ball Corporation (BALL), Gartner (IT), Carlisle Companies (CSL), The Clorox Company (CLX), RenaissanceRe Holdings (RNR), Jack Henry & Associates (JKHY), American Financial Group (AFG), Galaxy Digital (GLXY), Lumen Technologies (LUMN), Amdocs (DOX), Skyworks Solutions (SWKS), Hamilton Lane (HLNE), Zurn Elkay Water Solutions (ZWS), Match Group (MTCH), Ingredion (INGR), Voya Financial (VOYA), PJT Partners (PJT), Cirrus Logic (CRUS), Weatherford International (WFRD), The Hanover Insurance Group (THG), Rithm Capital (RITM), Enact Holdings (ACT), Mercury Systems (MRCY), Powell Industries (POWL), Spire (SR), H&R Block (HRB), The Marzetti Company (MZTI), Enphase Energy (ENPH), Graphic Packaging Holding Company (GPK), Champion Homes (SKY), Silicon Motion Technology (SIMO), Cabot (CBT), CorVel (CRVL), Artisan Partners Asset Management (APAM), United States Lime & Minerals (USLM), Varonis Systems (VRNS), Columbia Sportswear Company (COLM), FuboTV (FUBO), Madison Square Garden Entertainment (MSGE), IAC Inc. (IAC), BellRing Brands (BRBR), Intapp (INTA), Capri Holdings (CPRI), Patria Investments (PAX), Atkore (ATKR), CSG Systems International (CSGS), Benchmark Electronics (BHE), Horace Mann Educators (HMN), J&J Snack Foods (JJSF), Sonos (SONO), NGL Energy Partners LP (NGL), RPC, Inc. (RES), American Assets Trust (AAT), BrightView Holdings (BV).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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