Nasdaq 100: Tech Stocks Surge as Palantir Soars 26%, Apple Faces Tariff Risks

Nasdaq and S&P 500 Rise as Palantir Surges; Apple Faces Tariff Risks

The Nasdaq Composite climbed 1% on Tuesday, while the S&P 500 advanced 0.5%, supported by a strong rally in Palantir. Wall Street attempted to stabilize following the latest trade developments, with investors closely watching the impact of tariffs on major tech firms.

How Are Sectors Performing?

The technology sector led gains, rising 1.31%, driven by Palantir’s surge. Communication services also saw a strong 1.08% advance. Energy stocks gained 1.98% as oil prices strengthened. Meanwhile, consumer staples and healthcare lagged, slipping 0.54% and 0.43%, respectively.

Palantir Leads Tech Higher

Palantir shares soared 26% after reporting fourth-quarter results that exceeded expectations. The company posted adjusted earnings of 14 cents per share, beating the 11-cent estimate, while revenue reached $828 million versus a projected $776 million. Strong guidance for the full year further fueled investor optimism.

Spotify also contributed to the tech rally, jumping 8% on faster-than-expected user growth. The streaming giant reported 675 million monthly active users, surpassing estimates of 664.3 million.

Apple Faces Tariff Pressure

Morgan Stanley warned that Apple may be forced to raise iPhone prices if trade tensions with China persist. The firm estimates a 3.5% earnings-per-share headwind from the 10% tariff imposed on Chinese imports. While Apple could shift production to India, its current capacity there remains insufficient to offset supply chain disruptions. A tariff exemption from the U.S. government is a possibility, but if that fails, Apple may need to implement a modest 3% price hike to absorb costs.

Notable Earnings Moves

Pfizer gained 1.8% after delivering better-than-expected earnings of 63 cents per share on $17.76 billion in revenue. However, PepsiCo dropped 2% as revenue came in slightly below estimates, marking the fifth consecutive quarter of declining North American demand.

Merck saw an 8% premarket decline after issuing full-year guidance that missed expectations. The pharmaceutical company forecasted earnings of $8.88 to $9.03 per share, while analysts had anticipated $9.13.

Elsewhere, Estee Lauder tumbled 7% after projecting a steeper-than-expected 10% to 12% revenue decline for the next quarter. Meanwhile, Ferrari gained 4% following strong earnings, reporting a 21% year-over-year increase in net income.

Market Outlook

Earnings will remain a key driver for market direction, with upcoming reports from major consumer and industrial companies likely to influence sentiment. Investors will also be watching for any policy updates related to tariffs, especially for Apple and other multinational tech firms. Sector rotation will continue to play a role as traders assess inflation data, interest rate expectations, and broader economic indicators to determine the market’s next move.

More Information in our Economic Calendar.