The S&P 500 and Nasdaq indexes were poised for a solidly higher open on Tuesday, stabilizing after a sharp sell-off in commodities during the previous session, as investors braced for a busy week of corporate earnings reports. Palantir Technologies Inc. saw its pre-market shares surge by 11.2%, as its impressive earnings report highlighted robust demand for its military-grade artificial intelligence tools, with U.S. defense spending boosting quarterly sales. Teradyne's stock price soared by 22%, driven by the chip-testing equipment manufacturer's strong first-quarter guidance, which benefits from another wave of AI-related investments—with major tech companies pouring billions into expanding data centers. "Palantir's excellent earnings are providing support for the artificial intelligence sector's momentum," stated John Campbell, Senior Portfolio Manager at Quanquan Global Investments. Alphabet, the parent company of Google, gained 1.3% in pre-market trading after hitting a record high in the previous session; Amazon.com rose 0.8%. Both members of the "Magnificent Seven" tech giants are scheduled to report earnings later this week, offering investors fresh insights into the race to commercialize artificial intelligence. Advanced Micro Devices and server manufacturer Super Micro Computer, both set to report earnings after the market closes, saw their pre-market shares rise by approximately 2% each. Campbell added, "We are observing that a significant amount of short-term capital is positioning in related stocks ahead of earnings releases, betting on post-earnings price increases—this is indeed happening currently." Recent earnings from leading technology companies underscore that investors are increasingly focused on the returns from massive capital expenditure plans. With investments in AI-related infrastructure surging, companies are under pressure to translate these expenditures into measurable profits to justify their current high valuations. Meanwhile, PayPal predicted 2026 profits that fell short of market expectations, causing its stock to plummet by 17.2%. On the macroeconomic front, the U.S. House of Representatives is expected to attempt to pass an agreement later in the day to end the current government shutdown—which has once again disrupted the release of economic data, forcing the postponement of the highly anticipated January non-farm payrolls report originally scheduled for last Friday. The Job Openings and Labor Turnover Survey (JOLTS) report, initially set for release on Tuesday, has also been delayed. At 8:28 AM Eastern Time, Dow Jones Industrial Average mini futures were up 3 points, or 0.01%; S&P 500 mini futures rose 17.75 points, or 0.25%; and Nasdaq 100 mini futures climbed 144.25 points, or 0.56%. During Monday's trading session, the S&P 500 and Dow Jones Industrial Average closed near record highs, while the Nasdaq Composite Index finished up 0.5%. Earnings Reports Pour In Data from the London Stock Exchange Group indicates that approximately one-quarter of S&P 500 constituent companies are scheduled to report quarterly earnings this week, with analysts projecting a nearly 11% year-over-year profit increase for the index's components in the fourth quarter of last year—up from expectations of around 9% at the beginning of January. Pfizer reported fourth-quarter profits that exceeded expectations, yet its stock fell by 4.6%; Merck saw its shares decline by 0.7% after forecasting 2026 sales below expectations. PepsiCo's stock was volatile, ultimately edging up 0.5%, as investors digested the company's announcement of price cuts for core brands like Lay's and Doritos. Mexican chain restaurant Chipotle, Cadbury owner Mondelez International, and consumer goods manufacturer Clorox are all set to report earnings after the market closes. Following last month's data showing U.S. consumer confidence in January dropped to its lowest level in over 11 years, the market will be scrutinizing earnings reports for clues on consumption trends. Additionally, the market will closely monitor remarks from Federal Reserve official Thomas Barkin scheduled for later in the day.
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