- US equities maintain positive momentum as tech and AI stocks post strong earnings.
- Market participants ignore tariff noise and remain concerned about the upcoming big tech earnings.
- The slump in commodities and cryptocurrencies has soured the overall risk sentiment, affecting the gains in equity markets
US equities started February with strong momentum, but this time, under a more complicated environment. The Dow, S&P 500, and Nasdaq all had reasonable gains at the start of the month. Futures also pointed to a positive bias, suggesting that investors are willing to take on more risk even as they remain worried about the economy.
Much of the strength comes from technology and AI-related names. Palantir’s stock rose after the company reported strong YoY revenue growth and provided positive guidance. Dell’s stock also rose as the market prepared for increased demand for AI-related servers. Chipmakers like AMD and Micron saw their stocks rise, indicating that investors remain excited about spending on data centers and AI infrastructure.
Earnings remain the key factor that affects the market in the short term. Over 100 S&P 500 companies are set to report, including big names like AMD, Pfizer, Amazon, and Alphabet. Investors are closely monitoring whether AI investments are driving long-term revenue and margin growth. Recent results from some big tech stocks have shown that the market is quick to punish any sign of slowing momentum or weaker guidance.
At the same time, headlines about trade and tariffs are making background noise rather than serving as a clear risk-off trigger. The US has discussed or implemented tariff changes affecting India, Canada, Mexico, and South Korea. However, stock investors are still primarily interested in the state of US earnings and how long the country’s growth will last. At the moment, these trade problems are seen as manageable rather than systemic.
Commodities and cryptocurrencies make things even more complicated. Gold, silver, and bitcoin have all had big swings after significant rises, and quick reversals show how crowded trades can unravel quickly. Such volatility can affect overall risk sentiment, especially when it coincides with profit-taking in stretched equity leaders.
Overall, the mood around US stocks remains cautiously optimistic. Even as positioning, tariff noise, and cross-asset volatility call for more tactical risk management rather than unquestioning optimism, AI and tech earnings continue to support the bullish story.
