US markets opened in the green, extending gains from Monday, lifted by a rally in Palantir shares, while broader market sentiment was pressured by renewed tariff threats from President Donald Trump and underwhelming earnings from several major industrial names.
The tech-heavy Nasdaq index gained 0.23% at the open. The S&P 500 index was up 0.16% while the Dow Jones Industrial Average rose 0.14%.
Palantir leads tech gains
Shares of Palantir Technologies jumped nearly 8% after the defense technology firm reported quarterly revenue surpassing $1 billion for the first time.
The company also topped second-quarter earnings expectations and raised full-year guidance, fueling investor optimism.
Other corporate results painted a mixed picture.
Pfizer rose 3.8% after posting earnings and revenue above forecasts and lifting its full-year earnings outlook.
Dupont De Nemours gained 3.3% on better-than-expected quarterly results, while Axon Enterprise surged 14% after beating estimates and raising its full-year guidance.
Lemonade also saw a sharp rise, gaining 30% as second-quarter revenue exceeded estimates and losses narrowed more than analysts anticipated.
On the downside, Caterpillar shares gained 0.76% after reporting weaker-than-expected earnings.
Yum Brands fell 3.4% following a miss on both earnings and revenue. Eaton dropped 6.5% after issuing softer-than-expected third-quarter guidance despite topping second-quarter estimates.
Hims & Hers Health saw one of the steepest declines, sliding 6.4% as its second-quarter revenue and EBITDA forecast both came in below expectations.
Trump’s tariff comments pressure sentiment
Market sentiment was tempered by comments from President Trump, who told CNBC that new tariffs on semiconductors and pharmaceuticals are imminent.
“We’re going to be announcing on semiconductors and chips, which is a separate category, because we want them made in the United States,” Trump said, adding that the plan would be unveiled “within the next week or so.”
On pharmaceuticals, the president indicated that tariffs could eventually reach as high as 250%, the steepest rate he has proposed to date.
The remarks come amid heightened trade policy activity that has already unsettled markets.
Last week, stocks fell sharply following tariff announcements and a weak jobs report, raising concerns over economic momentum.
While the S&P 500 rebounded 1.5% on Monday, snapping a four-day losing streak, analysts remain cautious about potential volatility through August.
Trump also revealed he is considering four candidates for the next Federal Reserve chair, excluding Treasury Secretary Scott Bessent, who he said wishes to remain in his current role.
Earnings season nears final stretch
As of Tuesday, 370 companies in the S&P 500 had reported second-quarter results, with more than 81% beating analyst expectations, according to FactSet.
Investors are now awaiting reports from several notable names, including Snap, Advanced Micro Devices, and Rivian, scheduled for release after the close.
While the Nasdaq managed a modest gain on Tuesday, aided by strength in tech names, the broader market’s performance reflected lingering investor caution amid the intersection of earnings uncertainty and looming trade policy changes.
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