Nasdaq Futures Climb on Strong AI-Related Forecasts from Palantir, ON Semiconductor

U.S. stock index futures advanced in early trading Tuesday, with the tech-heavy Nasdaq leading the way after strong forecasts from companies in the artificial intelligence sector reassured investors about sustained demand. The positive sentiment comes as traders await a fresh batch of corporate earnings and key economic data for further clues on the health of the U.S. economy.

AI Demand Boosts Tech Stocks

Optimism was largely driven by upbeat corporate guidance, according to a Reuters report. Key movers in premarket trading included:

• Palantir Technologies (PLTR), which saw its shares surge 17.2% after the data analytics firm raised its annual revenue forecast, citing robust demand from both government and commercial clients for its AI-powered software.
• ON Semiconductor (ON), whose stock added 7.5% after the chipmaker projected quarterly revenue above market expectations, fueled by strong demand for its power management chips used in AI data centers.

The positive news lifted other AI-related stocks, with Marvell Technology and Micron Technology also trading higher. These results follow strong reports from tech giants Microsoft and Amazon last week, reinforcing the narrative that significant investments in AI are beginning to yield tangible returns.

Broader Market Eyes Earnings and Data

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As of 5:16 a.m. ET, Nasdaq 100 E-minis were up 0.45%, significantly outpacing S&P 500 E-minis, which rose 0.07%, and Dow E-minis, which were up 0.06%. The gains build on a strong start to the month, with the Dow Jones Industrial Average closing at a record high on Monday.

This earnings season has been stronger than average, with 85.2% of the 304 S&P 500 companies that had reported as of last Friday beating profit estimates, compared to a long-term average of 67.5%. Investors are now looking to reports due Tuesday from economic bellwether Caterpillar, as well as from Merck, Pfizer, and McDonald’s.

JOLTS Report in Focus for Fed Clues

The market's focus will later shift to economic indicators, particularly the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), scheduled for 10 a.m. ET. Economists expect the report to show that job openings fell to about 7.4 million in June from 7.6 million in the prior month.

Investors will scrutinize the labor market data for its potential influence on the Federal Reserve's monetary policy. According to the CME FedWatch Tool, traders are currently pricing in a 63.4% probability of at least a 25-basis-point interest rate hike at the central bank's next meeting.