The major U.S. index futures indicate a higher opening on Tuesday, suggesting that stocks may experience additional gains following the progress observed in the prior session. A sharp increase in shares of Palantir Technologies may contribute to early strength, as the AI-powered software provider is spiking by 11.7 percent in pre-market trading. The increase in Palantir’s stock follows the company’s announcement of fourth quarter results that exceeded expectations, accompanied by positive guidance for the future. Mining stocks are poised for initial strength as gold and silver prices surge following a recent decline. Nonetheless, purchasing enthusiasm might be relatively muted as market participants monitor the situation in Washington, where the House is poised to cast votes on a funding bill aimed at resolving a partial government shutdown. The shutdown has led the Labor Department to postpone the publication of this morning’s report on job openings, along with the more closely monitored monthly jobs report that was initially scheduled for release on Friday. In the wake of the varied performance observed in the previous week, equities predominantly advanced during Monday’s trading session. The major averages experienced upward movement throughout the day, with the Dow achieving a notable increase.
The major averages experienced a retreat from their peak levels as the day progressed, yet they sustained a position in positive territory. The Dow increased by 515.19 points, reflecting a rise of 1.1 percent, reaching 49,407.66. The Nasdaq saw an uptick of 130.29 points, or 0.6 percent, closing at 23,592.11. Meanwhile, the S&P 500 advanced by 37.41 points, equivalent to a 0.5 percent gain, settling at 6,976.44. The robustness observed on market was prompted by a report from the Institute for Supply Management, which indicated that manufacturing activity in the U.S. unexpectedly expanded for the first time in 12 months in January. The ISM reported that its manufacturing PMI increased to 52.6 in January, up from 47.9 in December, with a figure exceeding 50 signifying expansion. The index was anticipated by economists to rise slightly to 48.5.
The positive economic indicators enabled traders to dismiss ongoing trade tensions and the renewed ambiguity surrounding U.S. monetary policy. Equities experienced a positive response to indications of reduced tensions between the United States and Iran, following reports that Iran is willing to engage in negotiations with the U.S. regarding its nuclear program. The markets exhibited sustained strength following President Donald Trump’s announcement on Truth Social regarding the conclusion of a trade agreement with India. In the aftermath of discussions with Indian Prime Minister Narendra Modi, Trump announced a reduction in U.S. reciprocal tariffs on India from 25 percent to 18 percent. In return, India reportedly consented to eliminate its tariffs and non-tariff barriers against the U.S. entirely.
However, traders appeared hesitant to undertake more substantial actions in anticipation of the Labor Department’s highly scrutinized monthly jobs report scheduled for release on Friday. The forthcoming report is anticipated to reveal an increase in employment by 70,000 jobs in January, following a rise of 50,000 jobs in December, which may influence the perspective on interest rates. Airline stocks exhibited notable strength in the market, as evidenced by the NYSE Arca Airline Index’s impressive increase of 4.3 percent. Significant robustness was evident in the computer hardware sector, as demonstrated by the 4.2 percent increase in the NYSE Arca Computer Hardware Index. Banking, semiconductor, and retail stocks exhibited notable strength, whereas energy stocks experienced a decline following a significant drop in crude oil prices.