Stocks Set for Record as Palantir Fuels AI Trade: Markets Wrap
(Bloomberg) — Wall Street traders drove stocks toward all-time highs after a strong outlook from Palantir Technologies Inc. bolstered confidence in the artificial-intelligence boom. Dip buyers paced a rebound in gold and silver after a historic selloff.
Tech led gains on Tuesday, with Palantir up 10%. Advanced Micro Devices Inc. climbed ahead of its results, which will provide an update on its push to compete with Nvidia Corp. in AI. A global rush to secure memory chips for the revolutionary technology powered a surge in South Korean equities, with the Kospi jumping nearly 7% and Samsung Electronics Co. soaring the most since 2008.
Traders’ appetite for risk is stabilizing after a steep drop in metals triggered a pullback from stocks and crypto at the end of last week. Strong US data is adding to the optimism, showing an economy that remains on a solid footing as the earnings season rolls in.
“Investors take comfort from a rebound in metal prices and impressive Palantir earnings, which have helped to calm AI-related concerns,” said Fiona Cincotta at City Index.
The dollar barely budged after notching its biggest back-to-back advance since April. Treasury yields were mildly higher, with investors parsing the latest remarks from central bank speakers.
Federal Reserve Bank of Richmond President Tom Barkin said policy easing has bolstered the jobs market as officials now look to bring inflation back to the target. Fed Governor Stephen Miran said the absence of strong price pressures means rates need to be lowered again this year.
The S&P 500 rose 0.2%. The yield on 10-year Treasuries advanced one basis point to 4.29%. The dollar slid 0.1%. Germany’s 30-year bond yields hit the highest since 2011 amid heavier issuance. Gold jumped 5.5%.
Corporate Highlights:
Palantir Technologies Inc. forecast revenue for fiscal 2026 that significantly exceeded Wall Street expectations, a boost for the data analytics company after its shares have gotten off to a lackluster start so far this year. Elon Musk is combining SpaceX and xAI in a deal that values the enlarged entity at $1.25 trillion, as the world’s richest man looks to fuel his increasingly costly ambitions in artificial intelligence and space exploration. Walt Disney Co. said Josh D’Amaro will succeed Bob Iger as chief executive officer of the entertainment giant, ending a three-year search to replace its long-serving leader. PayPal Holdings Inc. said HP Inc. Chief Executive Officer Enrique Lores will take the top job from Alex Chriss, whose turnaround plan failed to meet targets and streamline the sprawling payments business. Teradyne Inc. soared after the company forecast revenue for the first quarter that exceeded the average analyst estimate. Rambus Inc. sank after analysts noted that a supply chain hiccup weighed on the semiconductor device company’s outlook. Stocks seen as vulnerable to disruption from artificial intelligence slid sharply on Tuesday after Anthropic released a tool designed to automate legal work, adding to worries about the impact that AI will have on data services and information businesses. PepsiCo Inc. is cutting prices by as much as 15% for key brands, including Lay’s and Doritos, in a bid to lift sales by offering more affordable products. Archer-Daniels-Midland Co. said it expects its first annual profit increase since 2022, even as weak crush margins and a delay on US biofuel policy continue to weigh on results. Pfizer Inc. revealed data from one of its new obesity treatments early Tuesday with little detail, leaving investors wondering if the up to $10 billion it spent purchasing the company that created the medicine will pay off. Merck & Co. forecast 2026 sales and profit that missed Wall Street’s expectations as continued challenges with its HPV vaccine Gardasil, which may remain off the market in China this year, overshadowed growth from newer drugs. The US Food and Drug Administration turned down a self-administered version of AstraZeneca Plc’s lupus medicine, but the UK drugmaker said it’s still working with regulators to advance the request. Uber Technologies Inc. is rolling out its ride hailing service in the Chinese gambling hub of Macau, expanding into a new Asian market for the first time in years. The crypto exchange Kraken, which is planning to go public, saw revenue and earnings fall sequentially in the fourth quarter while digital asset prices tumbled and investor demand plummeted. Galaxy Digital Inc., the crypto financial services conglomerate founded and run by billionaire Michael Novogratz, posted a wider-than-expected loss of almost $500 million during the crypto market’s fourth-quarter crash. Siemens Energy AG will invest $1 billion (€847 million) in manufacturing capacity in the US over the next two years as power demand surges. Nintendo Co.’s profit rose a smaller-than-expected 23% after the US levied tariffs on the Switch 2 console, revealing a big hit to margins while concerns grow about the impact of soaring memory chip prices in 2026. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.1% as of 9:30 a.m. New York time The Nasdaq 100 rose 0.3% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 fell 0.3% The MSCI World Index rose 0.3% Bloomberg Magnificent 7 Total Return Index rose 0.4% The Russell 2000 Index rose 0.3% Palantir rose 9.8% AMD rose 2% Currencies
The Bloomberg Dollar Spot Index fell 0.1% The euro was unchanged at $1.1791 The British pound was little changed at $1.3670 The Japanese yen fell 0.2% to 155.97 per dollar Cryptocurrencies
Bitcoin fell 0.2% to $78,324.37 Ether fell 1.5% to $2,306.3 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.29% Germany’s 10-year yield advanced three basis points to 2.90% Britain’s 10-year yield was little changed at 4.51% The yield on 2-year Treasuries advanced one basis point to 3.59% The yield on 30-year Treasuries was little changed at 4.92% Commodities
West Texas Intermediate crude rose 0.9% to $62.69 a barrel Spot gold rose 5.7% to $4,925.25 an ounce ©2026 Bloomberg L.P.
