Futures tied to the main U.S. equity benchmarks were higher ahead of a busy week of corporate earnings. Markets are reacting to news that Elon Musk’s SpaceX has agreed to acquire xAI in a blockbuster transaction valuing the combined group at more than $1 trillion, while Palantir (NASDAQ:PLTR) posted record quarterly revenue, lifting its shares in extended trading. Sentiment has also been helped by a rebound in gold after a sharp selloff, even as oil prices edge lower on signs of easing U.S.-Iran tensions.
Futures point higher
U.S. stock futures traded in positive territory early Tuesday as investors positioned for a heavy flow of results. By 02:33 ET, Dow futures were up 34 points, or 0.1%, S&P 500 futures had gained 19 points, or 0.3%, and Nasdaq 100 futures were ahead by 143 points, or 0.6%.
Wall Street ended a volatile session higher on Monday, supported by renewed strength in AI-linked chipmakers. Shares in Alphabet climbed to a fresh record, while Amazon rose around 1.5%. Both tech heavyweights are due to report earnings later this week.
Broader sentiment has also been supported by President Donald Trump’s move to cut U.S. import tariffs on India to 18%, down from levels that were previously the highest applied to any U.S. trading partner.
In Washington, the House of Representatives is expected to vote later today on legislation aimed at ending a partial government shutdown. The shutdown has already forced the delay of key U.S. labor data, including the monthly nonfarm payrolls report that had been scheduled for Friday. Separately, fresh data showed U.S. factory activity expanded last month for the first time in a year.
SpaceX to acquire xAI
Elon Musk’s SpaceX has agreed to acquire xAI in a deal that values the combined business at about $1.25 trillion. The transaction underscores Musk’s push to build scale across sectors ranging from space exploration to artificial intelligence and robotics.
SpaceX, best known for its reusable rockets and vast satellite network, and xAI, the developer behind the AI assistant Grok, are among the world’s most closely watched private companies. A long-anticipated IPO of SpaceX could come as soon as this year, while xAI was valued at $230 billion in a January fundraising round. According to Bloomberg News, shares in the merged entity are expected to be priced at $526.59 each.
Palantir posts record revenue
On the earnings front, Palantir shares jumped in after-hours trading, although they later pared some of the initial gains. The data analytics company reported record quarterly revenue of $1.41 billion for the final three months of 2025, driven by strong demand from both government and commercial clients for its AI-powered platforms.
Revenue surged 70% year on year, beating Wall Street expectations, while net income reached a record $609 million. Despite benefiting from enthusiasm around AI, Palantir’s stock has lagged so far this year amid a broader pullback in software names. The company has also faced scrutiny over its work with the Trump administration, particularly related to immigration enforcement.
Elsewhere on the earnings calendar, Pfizer is due to report before the U.S. market opens, while Advanced Micro Devices is scheduled to release results after the close.
Gold steadies after sharp drop
In commodities, gold prices rebounded as the metal stabilized following two days of heavy losses, helping ease investor nerves after a period of intense volatility. Spot gold last jumped 5.8% to $4,931.60 an ounce, while April gold futures rose 6.5% to $4,954.04.
Bullion had fallen to around $4,400 an ounce on Monday, roughly $1,200 below last week’s record high. The pullback was triggered by profit-taking after President Trump nominated former Federal Reserve governor Kevin Warsh as the next Fed chair, a move that reduced uncertainty and dampened some safe-haven demand. Warsh is seen as less dovish than markets had expected, and gold typically performs better in a low-rate environment.
Despite the correction, ING analysts said the broader case for gold remains intact. “The structural drivers — elevated geopolitical risk, macro uncertainty, diversification flows and ongoing central bank buying — remain firmly in place,” wrote analysts including Warren Patterson and Ewa Manthey. Silver futures, which suffered their steepest one-day drop on record on Friday, also rebounded sharply.
Oil prices slip
Oil prices moved lower for a second consecutive session, as easing tensions between the U.S. and Iran reduced the geopolitical risk premium in crude markets. Brent futures fell 0.6% to $65.91 a barrel, while U.S. West Texas Intermediate crude slipped 0.5% to $61.80.
Both benchmarks had dropped more than 4% in the prior session after President Trump said Iran was “seriously talking” with Washington, signalling a potential de-escalation with the OPEC member. Reuters has reported that Iran and the U.S. are expected to resume nuclear talks on Friday in Turkey.
Further pressure came from a firmer U.S. dollar, with the dollar index hovering near a one-week high, weighing on demand for dollar-denominated oil from overseas buyers.