US stock futures rose on Tuesday, stabilizing after a broad sell-off driven by escalating tensions in the Middle East.
S&P 500 futures (ES=F) moved up 0.3%, while those on the tech-heavy Nasdaq-100 (NQ=F) put on roughly 0.6%. Dow Jones Industrial Average futures (YM=F) edged up 0.2%.
Palantir Technologies (PLTR) beat Wall Street estimates for first quarter revenue and profit, driven by surging sales to commercial clients and the US government sector. Its revenue jumped 85% amid questions about the impact of AI tools on its software business. Shares slid in premarket as investors digested the report released Wednesday.
Investor sentiment has been under pressure after the United Arab Emirates reported that Iran launched drones and missiles toward its territory, raising concerns that an already fragile ceasefire framework involving the United States could deteriorate further.
Adding to tensions, US officials indicated that American forces had engaged Iranian vessels in the Strait of Hormuz, reportedly disabling several boats accused of threatening commercial shipping routes. Iranian state media, however, disputed those claims.
Energy markets reflected the uncertainty. Oil prices fell, with West Texas Intermediate (CL=F) crude futures pulling back almost 3% to around $103 per barrel. Brent crude futures were down 2% to trade above $112 a barrel.
On the corporate front, several major names are set to report earnings on Tuesday, including Shopify (SHOP), Pfizer (PFE), and Advanced Micro Devices (AMD).
Investors will get fresh figures on the US trade balance and the latest Job Openings and Labor Turnover Survey (JOLTS), both of which could provide further insight into the strength of the economy.
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Shares in Palantir slid almost 3% in premarket trading on Tuesday as investors scrutinized its Q1 earnings beat and raised outlook.
Yahoo Finance’s Ines Ferré reports:
Palantir Technologies (PLTR) reported Q1 revenue and profit that topped analyst estimates, driven by surging sales to commercial clients and the US government sector.
The company’s revenue jumped 85% in the first three months of this year to $1.63 billion, beating the consensus estimate of $1.53 billion, according to Bloomberg data. The majority of that revenue, or $1.28 billion, came from the US alone.
CEO Alex Karp pushed back against those who bet against Palantir’s success and questioned the impact of AI on its business.
“When the whole world said software had to be worthless, we built platforms that work,” Karp said during the company’s earnings call.
… Shares of Palantir have been recovering from an earlier sell-off as the software sector has been hit amid concerns about AI disrupting business models.
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Reuters reports:
Apple (AAPL) has held exploratory discussions about using Intel (INTC) and Samsung Electronics to produce the main processors for its devices, Bloomberg News reported on Monday, citing people familiar with the deliberations.
Apple executives have made visits to a Samsung plant under development in Texas and, separately, also held preliminary talks with Intel about enlisting the company’s chipmaking services, Bloomberg reported.
While the move would offer Apple a secondary option beyond its longtime partner Taiwan Semiconductor Manufacturing Co, the iPhone-maker is also concerned about using non-TSMC technology, the report said, citing worries about reliability and scale.
Read more here.
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Bloomberg reports:
Oil held the bulk of a sharp gain after fighting flared in the Middle East, with the US and Iran exchanging fire, renewed attacks on energy infrastructure, and vessels hit near the Strait of Hormuz.
Brent (BZ=F) traded near $114 a barrel, after surging 5.8% on Monday, while West Texas Intermediate (CL=F) was below $105. The US military fought off Iranian attacks as it guided two US-flagged vessels through the waterway, according to US Central Command. In the United Arab Emirates, an oil terminal in Fujairah was hit.
The fresh round of hostilities came as the US sought to clear a path through Hormuz for stranded vessels, casting doubt on the four-week ceasefire between Washington and Tehran. President Donald Trump said the war may last another two to three weeks in comments to Salem News Channel.
US destroyers USS Truxtun and USS Mason transited the strait, CBS reported. The vessels were supported by Apache helicopters and other aircraft and faced a series of coordinated threats during the passage, CBS said.
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