U.S. stocks traded mostly lower on Tuesday, with sharp post-earnings moves in major companies dominating market action. A renewed selloff in bonds weighed on equities, even as gold and silver rebounded after suffering heavy losses earlier in the week.
By 10:12 ET (15:12 GMT), the Dow Jones Industrial Average was slightly higher at 49,415.78. The S&P 500 fell 0.5% to 6,942.32, while the Nasdaq Composite dropped 1.1% to 23,337.90.
Treasury yields jump as metals rebound
U.S. Treasury yields surged as investors sold bonds following stronger-than-expected U.S. manufacturing data released on Monday. At the same time, gold and silver prices staged a sharp recovery after historic declines.
The benchmark U.S. 10-year Treasury yield climbed 9 basis points to 4.282%, while the more rate-sensitive 2-year yield rose 8 basis points to 3.578%.
Jake Dollarhide, CEO of Longbow Asset Management, said the inverse relationship between bonds and precious metals could persist in the near term as markets adjust to uncertainty surrounding upcoming Federal Reserve leadership changes.
Gold prices stabilized after two days of steep losses, easing investor anxiety following extreme volatility. Spot gold surged nearly 6% to $4,940.86 per ounce, while April gold futures advanced 6.6% to $4,959.79 per ounce.
Bullion had dropped as low as $4,400 per ounce on Monday, shedding nearly $1,200 from a record high reached last week.
Earnings season takes center stage
Corporate earnings remained a key driver of market sentiment, with more than 100 companies in the S&P 500 scheduled to report results this week.
Shares of Palantir Technologies jumped after the company reported record quarterly revenue of $1.41 billion, fueled by strong demand for its AI-powered tools from government and commercial customers.
In contrast, PayPal Holdings slid sharply after missing quarterly estimates and announcing a leadership change.
Investors are also watching upcoming earnings from Advanced Micro Devices, scheduled after the market close, for insights into demand for AI-focused chips.
Later in the week, results from Alphabet and Amazon are expected to shine a spotlight on advertising trends, cloud computing growth, and consumer spending.
The earnings outlook follows a mixed response to Microsoft’s results last week, as strong headline numbers were offset by investor concerns over cloud growth and the pace of returns on heavy AI investment.
Musk reshapes tech landscape
Elsewhere, Elon Musk’s SpaceX acquired xAI in a deal valuing the combined entity at $1.25 trillion.
SpaceX, known for its reusable rockets and satellite network, and xAI, the developer of the Grok AI assistant, are among the world’s most closely watched private companies. Analysts have speculated that SpaceX could pursue a public listing as soon as this year, while xAI was valued at $230 billion in a fundraising round in January.
Dan Ives of Wedbush suggested the transaction could eventually pave the way for Tesla to be merged into the combined SpaceX-xAI entity.
Trade optimism and delayed data
U.S. equities began February on a positive footing after the Trump administration announced a trade agreement with India, cutting tariffs on Indian goods to 18% from 50%.
Analysts at Bank of America Securities said the move could improve market confidence by reducing policy uncertainty and encouraging investment activity.
Meanwhile, lawmakers in Washington are working to resolve a partial government shutdown that has delayed the release of key economic data. The U.S. Bureau of Labor Statistics said the January jobs report will not be published as scheduled, with additional labor market data postponed until federal operations resume.
Oil prices rebound
Oil prices also moved higher, recovering after two sessions of losses as easing U.S.–Iran tensions reduced geopolitical risk premiums.
Brent crude futures rose 0.7% to $66.79 per barrel, while U.S. West Texas Intermediate crude gained 1% to $62.73 per barrel.
The rebound followed a sharp drop on Monday after Donald Trump said Iran was “seriously talking” with Washington. Iran and the U.S. are expected to resume nuclear negotiations in Turkey on Friday, according to Reuters.
