TLDR
- US stock futures rose Tuesday with Dow, S&P 500, and Nasdaq all up around 0.3–0.6%
- Markets rebounded after Monday’s sell-off triggered by Iran missile attacks on the UAE
- Palantir beat Q1 earnings estimates with 85% revenue growth, though shares slid on AI concerns
- Oil prices pulled back, with Brent crude down 1% to around $113 a barrel
- Key earnings due Tuesday from AMD, Shopify, Pfizer, Occidental, and Ferrari
US stock futures climbed on Tuesday morning as investors looked past rising Middle East tensions and focused on a strong start to earnings season.
Futures on the Dow Jones Industrial Average rose 145 points, or 0.3%. S&P 500 futures gained 0.3% and Nasdaq 100 futures added 0.6%.
Monday saw a broad sell-off after the United Arab Emirates reported Iran had fired missiles at it. That sparked fears about a wider conflict in the region.
By Tuesday morning, however, those fears had cooled. President Trump stopped short of calling Iran’s actions a ceasefire violation, suggesting peace talks may continue.
Michael Brown, strategist at Pepperstone, said as long as talks between Washington and Tehran continue, “that should be enough to keep risk appetite underpinned.”
Palantir Beats But Shares Fall
Palantir reported first-quarter revenue and profit that topped Wall Street estimates. Revenue jumped 85%, driven by US government contracts and commercial clients.
Palantir just put up its best earnings growth since going public. $PLTR is not slowing down 📈https://t.co/BRbb0uDSdU
— CoinCentral (@realcoincentral) May 5, 2026
Despite the beat, shares fell as investors raised questions about how AI tools might affect its software business going forward.
The result was still seen as a positive signal for the broader market. Palantir became the latest large-cap company to beat analyst targets this earnings season.
Oil Pulls Back From Monday’s Surge
Oil prices dropped on Tuesday after spiking the day before. Brent crude futures fell 1% to around $113 a barrel. West Texas Intermediate traded near $104 a barrel, down about 2%.
Traders were selling crude on hopes that tensions in the Strait of Hormuz could ease. The waterway has been at the center of the US-Iran standoff in recent weeks.
Elevated oil prices have been a lingering concern for Wall Street. Tuesday’s pullback offered some relief to investors watching energy costs closely.
The 10-year Treasury yield edged one basis point lower to 4.43%. The dollar rose 0.1% against a basket of major currencies.
Investors are now watching a busy earnings lineup for Tuesday. Advanced Micro Devices reports results that could shed light on chip demand tied to the AI sector.
Shopify, Pfizer, Occidental, and Ferrari are also set to report. Each company is being watched for signs of how the broader economic backdrop is affecting business.
On the data side, markets are waiting for fresh US trade balance figures and the latest JOLTS report, which tracks job openings and labor turnover.
Bitcoin, Ethereum, and XRP also rose in early trading Tuesday, moving alongside the broader risk-on mood in markets.
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