Nasdaq Gains 0.6% and Reclaims 29,000. Strong Results from ON Semiconductor and Palantir

US100 futures rise 0.6% as AI optimism returns ahead of another busy earnings day. Sentiments before the US market open are supported by strong guidance from Palantir and ON Semiconductor, reinforcing investor confidence that massive spending on artificial intelligence is beginning to translate into tangible financial returns. Market attention is also focused on another round of corporate earnings and upcoming macroeconomic data, which will provide further insight into the health of the US economy and corporate sector. The S&P 500 is now just about 20 points away from reaching its first record high since June, while the Dow Jones closed at a fresh all-time high on Monday for the first time since July. Strong earnings from major technology companies and continued optimism surrounding AI monetization remain among the key drivers supporting the US equity market. At the same time, President Trump’s recent comments have fueled hopes for a gradual de-escalation of tensions in the Middle East, while oil prices have already retreated by roughly 10% from their recent peak.

AI leaders continue to strengthen market sentiment

Following last week’s strong earnings from Microsoft and Amazon, investors received further confirmation that multi-billion-dollar AI investments are beginning to generate meaningful returns. Palantir once again raised its full-year revenue guidance, citing robust demand from both government agencies and commercial customers for its AI-powered software platform. Meanwhile, ON Semiconductor issued better-than-expected sales guidance, driven by rising demand for power management chips used in AI data centers. The positive sentiment also spread across the broader AI sector, with Micron (+2.3%), Nvidia (+0.7%), and Marvell Technology (+4.4%) all trading higher in the pre-market session.

Earnings season continues to outperform historical averages

The US earnings season remains exceptionally strong. Of the 304 S&P 500 companies that had reported second-quarter results by the end of last week, 85.2% exceeded analysts’ earnings expectations, well above the long-term average of approximately 67.5%. Today’s earnings calendar includes several major companies, including Merck, Pfizer, Caterpillar, Marathon Petroleum, and McDonald’s. Meanwhile, Snap shares are up more than 8% after beating revenue expectations, supported by stronger advertising spending during the FIFA World Cup and increased activity from large North American advertisers.

US100 chart (D1)

The Nasdaq 100 futures contract has staged a V-shaped recovery and climbed back above the 29,000-point level, approaching resistance at the 50-day EMA on the daily chart. A sustained break above this moving average could represent an important shift in medium-term market momentum.

Source: xStation5

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