Stock futures were rising on Tuesday, putting the S&P 500 on the brink of a record high as tech extended its recent rebound.
The artificial-intelligence trade was making a comeback after Reuters reported the U.S. plans to ban imports of new China-made data-center parts. Coherent and Lumentum jumped 16% and 14%, respectively. Corning was up 9% while Marvell gained 8.2% and Micron rose 4.2%.
SK Hynix rose 4.1% to $148.57. William Blair initiated coverage of the South Korean chip maker's U.S. listing with an Outperform rating and a $260 price target. That price target represents 82% upside from Monday's closing price.
Sandisk gained 5.4%. SK Hynix and Sandisk announced the release of a technical blueprint for their high bandwidth flash technology on Tuesday.
Palantir surged 15% after the data analytics software developer reported strong second-quarter earnings. CEO Alex Karp described the quarter as "otherworldly," as U.S. commercial revenue rose 149% from a year ago.
ON Semiconductor gained 6.7% after the chip maker's second-quarter earnings beat expectations.
SpaceX rose 3%. Elon Musk's AI and robot company reports its inaugural quarterly numbers on Tuesday evening. Wall Street projects sales of $6.8 billion and earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $2.1 billion. A lot will be said about rocketry, AI, space, and even the future of human civilization.
Caterpillar soared 11% after the industrial machinery maker smashed Wall Street's second-quarter earnings estimates.
Merck added 0.7%. The company topped analysts' second-quarter targets across its top and bottom lines even as dealmaking costs from a recent acquisition weighed on results. Merck's quarterly beat was driven by the continued adoption of Keytruda, the company's blockbuster cancer treatment.
Pfizer declined a fraction after the drugmaker lifted the bottom end of its full-year revenue guidance, citing growth in its non-Covid pharmaceutical portfolio. The company's second-quarter results also came in above Wall Street's expectations.
McDonald's added 1.1%. The fast-food giant reported mixed second-quarter earnings, with profit coming in above expectations. The company also named a new president of its U.S. business as focus on the turnaround continues.
Spotify dropped 4.2% after the audio streamer said it reached 300 million premium subscribers in the second quarter, but posted disappointing earnings as AI and marketing costs rose.
BP fell 0.6% after the British oil major reported a surge in second-quarter profit, just a day after President Donald Trump said big oil companies including Chevron and ExxonMobil were "making too much money."