These 8 Items Are Shaping the Stock Market Tuesday

These are the early headlines and other items poised to influence the market at the start of the trading day Tuesday. As we share this collection of market drivers, U.S. equity futures are mixed with the S&P 500 and Nasdaq Composite set to open higher, while the Dow gives back a smidge of Monday’s gains.

1. Palantir Technologies Inc. forecast revenue for fiscal 2026 that significantly exceeded Wall Street expectations, a boost for the data analytics company after its shares have gotten off to a lackluster start so far this year. Annual revenue will gain 61% to about $7.19 billion, the Denver-based company said Monday in a statement. Analysts, on average, estimated $6.27 billion. (Bloomberg)

Nice confirmation for the adoption and growing usage of AI as Palantir’s (PLTR) U.S. commercial revenue soared 137% year over year in Q4 2025 and 28% sequentially, while at the same time its U.S. commercial contract value closed the quarter at $1.34 billion, up 67% year over year. Overall, TCV hit $4.26 billion, up 138% year over year. We’ll have a more detailed note out later today, but those results are sending PLTR shares higher this morning.

2. OpenAI is unsatisfied with some of Nvidia’s latest artificial intelligence chips, and it has sought alternatives since last year, eight sources familiar with the matter said, potentially complicating the relationship between the two highest-profile players in the AI boom. The ChatGPT-maker’s shift in strategy, the details of which are first reported here, is over an increasing emphasis on chips used to perform specific elements of AI inference, the process when an AI model such as the one that powers the ChatGPT app responds to customer queries and requests. Nvidia remains dominant in chips for training large AI models, while inference has become a new front in the competition. (Reuters)

There is some pushback on this from OpenAI’s own Sam Altman, but to us, it speaks as much to AI and data-center chip capacity being constrained, especially at Nvidia (NVDA) , which is a good problem for us given our positions in Marvell (MRVL) and Broadcom (AVGO) . It also benefits our position in SuRo Capital (SSSS) as its latest investment in TensorWave, which leverages (AMD) accelerator chips. And to be clear, it would be a mistake to count Nvidia out of this rising tide. The next catalysts to watch are earnings from Amazon (AMZN) and Alphabet (GOOGL) later this week.

3. Elon Musk plans to merge SpaceX with xAI in a deal that encompasses the billionaire’s increasingly costly ambitions to dominate artificial intelligence and space exploration. The deal was announced in a statement on SpaceX’s website signed by Musk and confirming an earlier Bloomberg News report. (Bloomberg)

An interesting move ahead of the expected IPO by SpaceX later this year and we'll be even more interested to read the eventual S-1 when it's filed with the SEC to see how Elon plans to cobble the two together.

4. The Trump administration will provide body cameras to federal officers in Minneapolis, Homeland Security Secretary Kristi Noem said Monday. “Effective immediately, we are deploying body cameras to every officer in the field in Minneapolis,” Noem said on social media. Noem said the body-camera program would expand nationwide to DHS law enforcement as funding becomes available. (WSJ)

On the one hand, we can say this development isn’t all that surprising, but on the other, it is serving as a catalyst that should fuel a rebound in shares of Axon (AXON) , which have been under considerable pressure of late. This announcement, especially the nationwide expansion of body cameras for DHS, is likely to spur other public safety adoption but also serve as a springboard for Axon's higher-margin cloud business. We intend to pick up more AXON shares when the market opens this morning.

5. House Republican leaders are sending the Senate-passed $1.2 trillion funding package back to the House floor — along with 10 days of funding for the Department of Homeland Security — to buy Congress time to negotiate whether to place new guardrails on the Trump administration’s immigration enforcement activities. The House Rules Committee voted Monday night to set up floor action on the government funding package that has boomeranged between the two chambers and would end the partial government shutdown that began Saturday. (Politico)

While this is dragging on a bit longer than expected, in Friday’s January Monthly Roundup, we shared with you the potential for this to happen. With President Trump demanding last night that House lawmakers back last week’s bipartisan spending deal passed by the Senate, we will (hopefully) see a quick end to this partial government shutdown.

6. The Bureau of Labor Statistics will not release the January jobs report on Friday as scheduled due to the partial government shutdown… Other reports planned for this week, including December’s Job Openings and Labor Turnover Survey and the Metropolitan Area Employment and Unemployment release, will also be rescheduled. (Bloomberg)

While hopefully brief, this partial shutdown will result once again in some delays in key economic data, including the December Employment Report. For us, it just means mining other data sets just like we did during the 2025 government shutdown. Fortunately, this delay should be relatively short, and based on the economic data received late last week and so far this week, it doesn’t look like the Fed will need to swoop in and cut rates to buoy the economy.

7. Economic data today per TipRanks: LMI Logistics Managers Index (January), RCM/TIPP Economic Optimism Index (January).

8. Companies reporting today per TipRanks: Archer-Daniels-Midland (ADM) , Capri Holdings (CPRI) , Eaton (ETN) , Ferrari (RACE) , Grainger (GWW) , Illinois Tool Works (ITW) , Merck (MRK) , PayPal (PYPL) , PepsiCo (PEP) , Advanced Micro Devices (AMD) , Chipotle (CMG) , Cirrus Logic (CRUS) , Clorox (CLX) , Lumentum (LITE) , Mondelez International (MDLZ) , Skyworks Solutions (SWKS) , Take-Two (TTWO) .

More Pro Portfolio:

At the time of publication, TheStreet Pro Portfolio was long PLTR, NVDA, MRVL, AVGO, SSSS, AMZN, GOOGL, AXON, LITE, and ETN.