Markets Edge Up on AI Earnings, CEO Shifts, Metal Surge

U.S. equities opened higher on Tuesday as another wave of corporate earnings hit the tape and AI-related optimism supported sentiment. The Nasdaq Composite rose about 0.2%, the S&P 500 gained roughly 0.1%, and the Dow Jones Industrial Average added around 0.3%, extending Monday’s 500-point advance in the blue-chip index.

Palantir Technologies was a key early driver, jumping about 11% in premarket trading after reporting stronger-than-expected results and a robust sales outlook, underpinned by demand for its military-grade AI tools and U.S. defense spending. Futures pointed to further gains, with S&P 500 and Nasdaq 100 contracts up 0.25% and 0.56%, respectively, supported by Palantir and other AI-linked names.

Teradyne also surged, with its shares rising more than 20% after the chip-testing equipment maker posted a strong first-quarter forecast built on AI-related investment in data centers. Analysts highlighted that investors are increasingly focused on evidence that heavy capital spending on AI infrastructure can translate into earnings growth across the broader semiconductor and industrial ecosystem.

Roughly one quarter of S&P 500 companies are due to report this week, and LSEG data show expectations for about 11% year-over-year earnings growth in the December quarter, up from 9% at the start of January. Large technology names including Amazon and Alphabet are scheduled later in the week, following recent record highs for some of the so‑called “Magnificent Seven” stocks.

The AI trade remained central to market moves. Investors are monitoring Nvidia and OpenAI after reports of cooling relations and slower progress on a potential Nvidia investment of up to $100 billion in the startup. Attention is turning to Advanced Micro Devices, whose after-hours earnings are seen as a key read on AI accelerator demand amid ongoing debate about potential AI overinvestment.

Caterpillar has also benefited from AI-linked infrastructure demand. The company’s latest quarter showed that its power and energy segment, which includes prime power systems for data centers, has become its largest by sales, overtaking traditional construction equipment. A Baird price target increase to $805 cited a large backlog and strong returns on invested capital, with AI-related data center power needs highlighted as a growth driver.

Beyond chips and hardware, Morgan Stanley survey work indicates that AI use is already widespread among U.S. consumers and workers, underscoring how quickly the technology has moved into day‑to‑day activity. At the same time, new AI tools are starting to pressure certain information-heavy business models: a European “AI risk” basket tracked by UBS fell to a record low after Anthropic released a corporate legal productivity tool, contributing to double‑digit declines in legal and data vendors such as RELX and Wolters Kluwer.

In parallel, American Tower has been expanding its data center footprint, positioning its CoreSite operations to support high‑bandwidth AI workloads. The company has rolled out native 400 Gbps connectivity in several facilities, and financial firms are evaluating the technology for high-speed trading and quantitative research, framing AI-related infrastructure as a growing theme in the REIT space.

Corporate leadership changes added another layer to Tuesday’s newsflow. The Walt Disney Company named parks chief Josh D’Amaro as its next chief executive, effective March 18, succeeding Bob Iger. Commentators noted that parks have grown from roughly 30–35% of Disney’s profits a few years ago to around 60% today, and argued that elevating D’Amaro underscores the central role of the parks business in Disney’s profit mix.

Market reaction was muted-to-negative, with Disney shares declining at the open. Some analysts highlighted the importance of giving the new CEO more room than his predecessor Bob Chapek received, noting that Iger appears intent on a “clean cut” this time to allow D’Amaro to set his own strategic course as Disney’s streaming operations stabilize.

At PayPal, shares fell more than 16% after the company reported quarterly earnings and guidance that missed analyst estimates. Alongside the results, PayPal announced that HP CEO Enrique Lores will become its new chief executive. Commentators suggested that Lores is expected to focus on improving the checkout experience and cost discipline, after a period in which PayPal’s stock has lagged newer fintech peers despite strong sector valuations.

Elsewhere, there were additional C‑suite moves. Viatris said it will appoint Matthew Maletta as Chief Legal Officer as longtime legal chief Brian Roman steps down after more than 20 years. Medtronic confirmed plans to exercise its option to acquire CathWorks, expanding its coronary artery disease portfolio, with closing targeted by the end of its fiscal 2026 subject to regulatory clearance.

Precious metals extended a sharp rebound after last week’s historic volatility. Gold futures jumped more than 6% on Tuesday, targeting their biggest daily gain since 2008, after suffering the deepest one‑day drop in 43 years on Friday. Silver rose over 13% as dip‑buyers returned, with traders citing both technical factors and interest from investors who had missed the prior rally.

Despite the recent pullback, major banks retained very bullish long‑term calls on gold. JPMorgan reiterated a year‑end target of $6,300 per ounce and a longer-term projection of $6,600 by 2027, pointing to continued strong demand from central banks and long‑term investors and characterizing last week’s decline as a pause rather than a breakdown. UBS and Deutsche Bank also maintained forecasts for gold prices above $6,000, citing steady investor interest.

By contrast, JPMorgan struck a more cautious tone on silver, warning that without central banks acting as dip buyers, the gold‑to‑silver ratio could drift higher again. Recent weakness in gold and silver had been linked in part to shifting expectations around U.S. Federal Reserve leadership and tighter margin requirements at CME Group, which triggered forced selling before buyers stepped back in.

Industrial metals and mining-related names showed mixed performance. Energy Fuels, a U.S.-based uranium and critical minerals company, saw its stock decline 12% over the week despite being up more than 34% year to date, as some investors locked in profits following a sharp rally driven by a U.S. Department of Energy initiative to build out domestic nuclear fuel supply.

Outside traditional asset classes, Elon Musk’s latest corporate restructuring drew significant attention. SpaceX announced it will acquire xAI, the company behind the Grok chatbot, in a transaction that values the merged entity at approximately $1.25 trillion. Under the agreed terms, the new company’s shares would be priced at $527 each.

The strategic goal of the merger is to deploy “orbital data centers.” SpaceX has filed with the U.S. Federal Communications Commission to launch a constellation of up to one million satellites, though it has said it is unlikely to deploy that full number. Musk has argued that using near‑constant solar energy in space to power xAI’s compute‑intensive models could make space the lowest-cost source of AI computing power within two to three years.

According to reporting on the deal, the consolidation of SpaceX and xAI is widely viewed as the final step before a planned $50 billion initial public offering, potentially as early as June 2026. The structure provides existing xAI investors with an exit route and links the startup’s heavy AI spending to SpaceX’s profitable launch and Starlink internet operations.

The combined SpaceX–xAI group is being positioned to compete directly with the data center scale of major technology platforms such as Alphabet and Meta. Musk has said the venture ultimately aims to launch a fleet of data center satellites capable of delivering up to one terawatt of computing power, with the ambition of making AI compute cheaper and more abundant and supporting the development of advanced AI systems.