"A huge global rally in stocks is underway today after Palantir delivered yet another blockbuster earnings call that blew through analysts' expectations yesterday and-separately-a poll of manufacturers showed they were surprisingly optimistic about the future.Palantir stock was up 10.86% in overnight trading, after closing 0.81% yesterday.Nasdaq 100 futures rose 0.41% this morning. Apple, Alphabet, and Amazon also rose yesterday and remained buoyant in overnight trading. S&P 500 futures were up 0.14% this morning after the index closed up 0.54% yesterday."
"Two factors were driving markets back toward record highs this morning: The Palantir results show that spending on AI is set to continue for the foreseeable future-putting fears that AI is a bubble on the backburner. And the Institute for Supply Management's manufacturing index yesterday showed a sharp and unexpected increase in optimism among factory purchasing executives, boosting non-tech stocks. That's why the tech-heavy Nasdaq and the broader S&P both went up even though Nvidia, Oracle, Meta, Microsoft, and Tesla-Magnificent 7 stocks that have the power to move the entire market-all declined."
"Ohsung Kwon and his team of analysts at Wells Fargo noted that 167 companies in the S&P 500 have reported Q4 earnings so far-and their earnings are 5% above the consensus. In addition, 68% of companies said they expected to increase their capital expenditure ("capex") above analysts' expectations. "We expect higher capex ... and volume growth in 2026," he told clients."
Global equity markets rallied strongly following Palantir's substantially better-than-expected earnings and an unexpectedly upbeat Institute for Supply Management manufacturing index. Palantir surged in overnight trading while Nasdaq 100 and S&P 500 futures rose alongside gains in major tech names such as Apple, Alphabet, and Amazon. Asian markets led with outsized gains in Japan and South Korea. Market drivers included renewed confidence in continued AI spending and increased optimism among factory purchasing executives that benefited non-tech sectors. Broad corporate results showed S&P 500 Q4 earnings about 5% above consensus and a large share of companies planning higher capex, though some analysts warned of tougher comparables ahead.
Read at Fortune
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