(Feb 3): US stocks struggled for direction on Tuesday as earnings took centre stage following the delay of economic data due to the government shutdown.
The S&P 500 Index dipped 0.02% at 9.54am, with the gauge hovering near all-time highs. Meanwhile, the technology-heavy Nasdaq 100 Index declined 0.4%. With the government shutdown causing delays to crucial economic data, earnings have taken the spotlight.
“The absence of the US jobs report shifts the focus solely on to earnings for US traders,” said Joshua Mahony, chief market analyst at Scope Markets, who highlighted a number of earnings reports for Tuesday, including Advanced Micro Devices Inc and Amgen Inc, which report after the bell.
Palantir Technologies Inc surged 5.2% at the open after the data analytics company forecast fiscal 2026 revenue that significantly exceeded Wall Street expectations. The guidance gives the company a boost after a lacklustre start to the year.
Since the previous earnings season, traders have questioned companies that have benefited from the artificial intelligence boom. Ballooning costs and unproven profitability have become bigger talking points, particularly amid a leadership change in the S&P 500 and investors placing more emphasis on value stocks.
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Palantir had “become very oversold and thus, we thought it had become ripe for a nice bounce after they reported their earnings”, said Miller Tabak’s Matt Maley. “Given the bullish news, and the extent of the oversold condition going into the report, this bounce should last for a while.”
The risk-on mood was helped by a rally in precious metals, with gold and silver both rebounding. Dip buyers took advantage of a historic collapse from all-time highs, with spot gold recovering somewhat from its worst rout in more than a decade while silver rose more than 10%.
Gold and silver both soared last month in a rally that was underpinned by a variety of factors, including geopolitical news as well as concerns around the autonomy of the Federal Reserve. The rally unwound in dramatic fashion at the end of last week amid warnings from market watchers on the advances being too large and swift.
See also: US stocks climb on solid factory report as bonds fall
Among notable movers, gold and silver miners including Newmont Corp rebounded as precious metals prices climbed out of the three-day slide.
PayPal Holdings Inc shares slumped 18% after the company said HP Inc chief executive officer Enrique Lores would take the top job from Alex Chriss, whose turnaround plan failed to meet targets and streamline the sprawling payments business. Archer-Daniels-Midland Co fell 3.7% after the food processing company’s profit outlook disappointed analysts.
Some healthcare names also dropped, with Pfizer Inc tumbling as data from one of its new obesity treatments underwhelmed.
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