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Futures tied to the major U.S. stock averages were trading higher on Tuesday morning after Wall Street finished the previous session with gains. By 03:03 ET (07:03 GMT), the Dow futures contract had added 111 points, or 0.2%, S&P 500 futures were up 19 points, or 0.3%, and Nasdaq 100 futures had climbed 201 points, or 0.7%.
Traders arrived at the new trading week weighing an ambiguous path to peace in the Middle East alongside a fresh slate of earnings reports. Equities were buoyed in part by developments that suggested a potential diplomatic opening in the Iran conflict, even as official statements from the two sides offered conflicting accounts of whether talks had actually resumed.
Why markets moved
Sentiment across risk assets was helped by President Donald Trump’s decision to call off planned strikes against Iran over the weekend, together with public claims that negotiations to address the disruptions in the Strait of Hormuz were due to restart with Tehran. Iran’s government, though, provided a different account: Iranian Foreign Ministry spokesperson Esmail Baghaei stressed that no meetings on a potential ceasefire were scheduled.
Investors are navigating a recurring cycle of threats and reversals that has left the Strait of Hormuz effectively shuttered for months, a key route for global oil shipments. Those developments have fed pronounced swings in oil prices and influenced broader market positioning.
Data also helped the risk tone: U.S. manufacturing activity accelerated in July, a move analysts attributed in part to heavy investment in artificial intelligence infrastructure. The AI spending narrative has been reinforced by strong quarterly results from large cloud providers like Microsoft and Amazon in recent weeks, though questions persist about when their multibillion-dollar commitments to data centers and chips will translate into dependable profits.
Fixed income and FX dynamics
U.S. Treasury yields fell following the latest signs of de-escalation in the Middle East, and after reports that the U.S. and Japan had coordinated intervention in foreign exchange markets to support the yen. Yields generally move inversely to prices, and the shift lower in yields reflected a modest tilt toward risk-taking after the earlier pullback.
Oil moves
Brent crude futures, the global benchmark, were last up 1.3% at $84.85 a barrel. That level compares with a surge to roughly $100 a barrel last month and pre-war levels closer to $70 a barrel. The Strait of Hormuz’s prolonged closure has been a central factor behind the wide swings in oil prices.
Palantir: strong quarter lifts stock
Shares of Palantir Technologies jumped in extended trading, rising by more than 15% after the company raised its full-year revenue outlook and reported sharp growth in U.S. commercial sales. The data analytics group said second-quarter revenue nearly doubled year-over-year to $1.94 billion, a result its chief executive described as "otherworldly." Palantir now projects annual revenue of as much as $8.16 billion; prior guidance had pointed to just under $7.7 billion.
CEO Alex Karp framed the demand environment as clients seeking greater control, saying customers are trusting Palantir to give them "maximal control over their operations, data and decisions," and asserting that "demand for AI sovereignty has been unleashed." The company’s Maven AI system, which analyzes battlefield intelligence and helps identify targets, was noted as a driver of closer ties with government customers in Washington.
Some analysts cautioned that Palantir’s software could face pressure from lower-cost entrants, including AI start-ups. The article noted that Palantir executives had previously criticized what they called "AI slop" produced by some frontier labs, and observers highlighted the potential competitive threat from cheaper alternatives developed by firms such as Anthropic.
Snap posts narrower loss; shares higher after hours
Snap Inc. also saw its shares rally in after-hours trading, rising by more than 7% following quarterly results. The company reported a second-quarter loss of $164 million, narrower than the $262.6 million loss recorded a year earlier. Snap attributed part of the improvement to planned cost reductions. The firm has announced it will reduce roughly 16% of its full-time workforce to rein in expenses.
Revenue for the quarter climbed 19% to $1.6 billion, helped by increased advertiser spending on Snap’s native formats such as Sponsored Snaps. Total advertising revenue rose 9% to $1.28 billion. The company’s other revenue streams, which include its subscription-based premium tier, showed substantial growth and were reported to have surged 85% to $316 billion.
White House to host AI executives
Reports indicated the Trump administration planned to host executives from major AI companies at the White House on Tuesday. According to the report, a framework for government oversight of AI would be reviewed at the meeting. Companies named as invited included OpenAI, Google, and Anthropic, with the Office of the National Cyber Director designated as the host within the executive branch.
The report said it was unclear whether the White House would present a finalized version of the framework or whether the session would serve as an opportunity to gather feedback from the companies in attendance.
What to watch next
Market participants will continue to monitor developments on several fronts: official confirmation, or lack thereof, of negotiations with Iran; subsequent moves in oil and Treasury yields as the geopolitical picture evolves; and the pipeline of corporate results for cues on the strength of tech and advertising spending. Palantir’s upgraded guidance and Snap’s narrower loss highlight how AI investment and cost management are shaping corporate performance in the current environment.
Given the mix of diplomatic ambiguity and corporate beat-and-raise reports, analysts and investors are likely to remain sensitive to headlines about talks with Tehran, updates from large technology firms on capital spending, and any follow-up detail about the White House’s discussions with AI industry leaders.