Market overview
Futures tied to major U.S. stock indices were higher in early trading on Tuesday as investors prepared for a wave of corporate earnings and digested a mix of tech M&A, earnings beats and commodity moves. By 02:33 ET (07:33 GMT), the Dow futures contract had added 34 points, or 0.1%, S&P 500 futures were up 19 points, or 0.3%, and Nasdaq 100 futures had gained 143 points, or 0.6%.
Equity markets in the prior session moved through volatile trade, with gains concentrated among firms exposed to artificial intelligence-driven demand for semiconductors. Google-owner Alphabet jumped to a new all-time high, and Amazon rose about 1.5% on the day. Both companies remain in focus as they are scheduled to report quarterly returns this week.
Sentiment received additional support from a reduction in import tariffs on India to 18% by President Donald Trump - a change from previously the highest levies applied to any U.S. trading partner. Domestic politics were also in the mix: the U.S. House of Representatives was set to vote on legislation aimed at ending a partial government shutdown later in the day. That shutdown resulted in the postponement of the monthly nonfarm payrolls report, originally due on Friday.
On the data front, fresh figures indicated U.S. factory activity expanded for the first time in a year last month, a detail market participants will fold into broader growth and earnings expectations ahead of the corporate reporting season.
1. SpaceX to acquire xAI
Elon Musk’s SpaceX has agreed to acquire xAI in a transaction that values the combined company at $1.25 trillion. The consolidation brings together two of the most closely watched private technology ventures - the reusable-rocket and satellite operator SpaceX, and xAI, the developer of the AI assistant Grok. Earlier coverage noted the deal as valuing the combined company at more than $1 trillion.
xAI had been assigned a $230 billion valuation in a fundraising round in January, while discussions about a potential public listing for SpaceX have continued, with some anticipating such a move possibly later in the year. According to people familiar with the matter, shares of the new firm are expected to be priced at $526.59 apiece, Bloomberg News reported.
2. Palantir posts record quarterly revenue
Data analytics provider Palantir reported record revenue of $1.41 billion in the last three months of 2025, driven by strong demand from both government and corporate clients for its AI-enhanced tools. That figure represented a 70% increase from the same period a year earlier, and it topped Wall Street expectations. The company also reported net income of $609 million, a company high.
Shares of Palantir climbed in extended-hours trading following the results, though those gains pared back somewhat from earlier moves. Despite the recent pickup tied to enthusiasm around AI, Palantir’s share price had been weaker so far in the year amid a wider pullback in software stocks. The company’s work with the Trump administration, particularly on immigration enforcement activities, has attracted intense scrutiny from some former employees and lawmakers.
Investors also had other earnings to watch on the calendar: Pfizer was expected to report before the start of U.S. trading, and Advanced Micro Devices was slated to release results after the close.
3. Gold steadies after sharp correction
Precious metals posted gains as gold steadied following two days of steep declines. Spot gold surged 5.8% to $4,931.60 an ounce, while April gold futures rose 6.5% to $4,954.04 per ounce. The yellow metal had earlier plunged to as low as $4,400/oz on Monday, shedding nearly $1,200/oz from an all-time peak recorded the previous week.
The selloff in gold was in part tied to the nomination of former Federal Reserve governor Kevin Warsh as the next Fed chair. The nomination removed a major uncertainty in markets and was perceived as potentially less dovish than investors had hoped, reducing some safe-haven demand that can bolster gold in a lower rate environment. Still, analysts cited that the metal’s structural drivers - elevated geopolitical risk, macro uncertainty, diversification flows and continued central-bank buying - remain intact.
Silver futures, which experienced an unprecedented one-day slide on Friday, also rallied in the wake of the correction.
4. Oil eases on signs of de-escalation
Crude prices fell for a second session as a reduction in U.S.-Iran tensions trimmed the risk premium in energy markets. Brent futures dropped 0.6% to $65.91 a barrel, while U.S. West Texas Intermediate crude slipped 0.5% to $61.80 a barrel. Both benchmarks had tumbled by more than 4% in the prior session after President Trump said Iran was "seriously talking" with Washington, a comment that signaled a possible de-escalation.
Media reports indicated Iran and the U.S. were expected to resume nuclear talks on Friday in Turkey, Reuters has reported. In addition, the U.S. dollar index was trading near its highest level in more than a week, a dynamic that can weigh on demand for dollar-priced crude among foreign buyers.
Implications and outlook
The combination of a marquee technology merger, strong results from an AI-driven software provider and moveable commodity prices underscores the cross-asset forces influencing markets this week. Earnings season, geopolitical developments and central bank leadership expectations are creating a backdrop where sector-specific news - from semiconductors to energy and precious metals - can drive abrupt re-pricing across risk assets.
Investors will remain attentive to upcoming corporate reports for fresh data on demand and margins, and to developments in Washington and overseas that could shift risk sentiment and commodity flows.
Key points
- U.S. futures rose modestly ahead of a busy earnings week, with early gains in technology-related names and chipmakers.
- SpaceX has agreed to acquire xAI, valuing the combined entity at $1.25 trillion, with shares of the new firm reportedly expected to be priced at $526.59 apiece, according to Bloomberg News.
- Palantir reported record quarterly revenue of $1.41 billion and net income of $609 million, with revenue up 70% year-over-year, lifting its stock in extended trading.
- Gold recovered from steep losses, with spot gold at $4,931.60/oz and April futures at $4,954.04/oz, after a correction linked in part to the nomination of Kevin Warsh for Fed chair.
- Oil eased as reports of a détente between the U.S. and Iran reduced geopolitical risk, sending Brent to $65.91/b and WTI to $61.80/b.
Risks and uncertainties
- Corporate earnings season may produce volatility if results and guidance diverge from expectations, affecting sectors including technology and semiconductors.
- Geopolitical developments between the U.S. and Iran remain an uncertain factor for oil markets; further shifts could reintroduce risk premia to crude prices.
- Changes in central bank leadership expectations, highlighted by the nomination of Kevin Warsh, can alter interest-rate expectations and safe-haven demand, influencing metals and broader asset allocation.