Nasdaq Futures Rise on Strong AI Forecasts from Palantir and ON Semiconductor

Nasdaq futures rose on Tuesday after strong forecasts from Palantir and ON Semiconductor reassured investors about AI-driven demand. The two companies' revenue projections surpassed expectations, with Palantir gaining 17.2% in premarket trading and On Semiconductor adding 7.5%. This news has underpinned gains on Wall Street since the last week's strong results from AI leaders Microsoft and Amazon.

The S&P 500 is close to hitting its first record high since June, while the Dow closed at a record high on Monday for the first time since July. Other AI-linked stocks such as Micron, Nvidia, and Marvell also saw gains, with Micron up 2.3%, Nvidia rising 0.7%, and Marvell increasing by 4.4%.

The earnings season has so far been better than historical standards, with 85.2% of companies in the S&P 500 beating estimates, compared to a long-term average of 67.5%. Snap jumped 8.1% after beating second-quarter revenue estimates, thanks to increased advertising spending during the FIFA World Cup and stronger campaign activity from large advertisers in North America.

The focus later in the day will shift to economic data, including the Labor Department's Job Openings and Labor Turnover Survey, which is expected to show the economy created about 7.4 million jobs in June, lower than the 7.6 million in the previous month.