Morning Wrap: Wall Street Returns to the Offensive as Palantir Fuels AI Optimism

📈 US Stock Market & Corporate Earnings

• The session overseas ended in an upbeat, celebratory mood, with all major US indices closing the day with solid gains.

• The biggest winner was the Nasdaq index, which gained over 2.1%.

• The S&P 500 index gained 1.5%, while the Dow Jones ended the day up 1.3%.

• Strong gains were driven primarily by technology and growth companies.

• Investors once again eagerly reached for equities tied to artificial intelligence, AI infrastructure, cybersecurity, cloud computing, and semiconductor manufacturing.

• After the market close, Palantir presented stellar results for the second quarter of 2026, once again significantly beating market expectations.

• The company's revenue surged by 93% year-over-year to $1.94 billion (compared to the expected $1.81 billion).

• Adjusted earnings per share came in at $0.41 (versus the projected $0.34), confirming the sustained high growth momentum of the business.

• Contract activity also looked very strong, and management's optimism was reflected in upgraded full-year guidance.

• Palantir now expects 2026 revenue of $8.15–$8.16 billion, which would represent year-over-year growth of approximately 82%.

🌏 Asian Markets

• Asian markets finished the session with a mixed tone, as investors remained cautious following recent volatility in the tech sector.

• In China, the Hang Seng index fell about 0.8%, while the FTSE China 50 dropped by nearly 0.9%—despite a rebound in some tech stocks and improved sentiment around AI, selling pressure remained visible among major Chinese firms.

• In Japan, the Nikkei 225 index declined by approximately 0.3%, staying under pressure from fears of potential currency market intervention by authorities.

• A potential strengthening of the yen could negatively affect Japanese exporters' earnings, which limited investor appetite for major domestic stocks.

• South Korea also underperformed, with the KOSPI index dropping about 0.4% (though losses were relatively contained following prior heavy sell-offs in the technology sector).

• The KOSDAQ index rebounded significantly, pointing to a partial return of capital to more dynamic companies.

• Australia stood out as the top performer in the region, with the S&P/ASX 200 index gaining nearly 1.3% and approaching its intraday highs.

• Australian stocks were supported by improving global sentiment and stronger commodity stock prices, making Australia one of the strongest markets during today's Asian session.

🌍 Geopolitics

• An additional factor supporting sentiment on Wall Street was Donald Trump's latest statements regarding talks with Iran.

• The US President reported that negotiations are already underway at Tehran's request and highlighted that they could be the "last chance" to reach an agreement.

• Key topics of discussion included the reopening of the Strait of Hormuz and Iran's nuclear program.

• Donald Trump noted that talks regarding the free flow of vessels through the strait could yield quick results, whereas the denuclearization process will require more time.

• The US President's decision to pause another round of strikes on Iran was, according to his assurances, linked to the prospect of a swift deal.

• Iranian officials, however, denied that direct negotiations were taking place between Tehran and Washington, indicating that the positions of both sides remain far apart.

• Hopes for de-escalation were overshadowed by warnings from Tehran: Mohsen Rezaei, a senior advisor to Iran's Supreme Leader, declared that US warships and military forces operating near the Strait of Hormuz could face severe danger if the current blockade continues.

• Rezaei urged Washington to alter its approach, emphasizing that Tehran does not intend to accept the current status quo indefinitely.

• The Iranian representative firmly rejected the possibility of creating a second shipping corridor through the Strait of Hormuz, confirming the refusal to allow an alternative route that bypasses Iran's control over the key commodity transit pathway.

• For now, the market views these statements as political and rhetorical pressure rather than a signal of imminent military action.

🛢️ Commodities

• The market initially reacted positively to the prospect of de-escalation, leading to a sharp drop in oil prices and a reduction in the geopolitical risk premium.

• During Monday's session, WTI crude fell by nearly 6%, dropping toward $80 per barrel, while Brent crude pulled back toward $83 per barrel.

• Donald Trump criticized the high profits of oil corporations and called on them to lower fuel prices for American consumers.

• The situation in the commodities market remains complex—after the initial sell-off, oil prices rebounded slightly due to uncertainty surrounding the durability of any potential US-Iran deal.

• Ongoing tensions around the Strait of Hormuz and the absence of alternative transit corridors continue to support the geopolitical premium in oil prices, meaning any signal of escalation could once again boost volatility in commodities.

⛏️ Precious Metals

• A cautious start to the day is visible across precious metals markets.

• Gold is gaining about 0.1% and hovering around the $4,050 per ounce level.

• Silver is gaining over 1% and approaching the $59 per ounce level.

🏛️ Macroeconomics

• In Japan, investor attention was drawn to remarks by Economy Minister Minoru Kiuchi and plans for further fiscal support.

• Kiuchi noted that the impact of rising Middle East conflict costs on consumer prices remains limited for now.

• However, the minister warned that cost pressures could gradually transfer to food and other consumer goods in coming months.

• The Japanese government shares the Bank of Japan's forecast, according to which inflation could accelerate in the second half of the year.

🪙 Cryptocurrencies

• Slight optimism is also evident in the cryptocurrency market.

• Bitcoin is gaining approximately 0.4% and approaching the $64,000 level.

• Ethereum is showing only symbolic gains, remaining at the $1,860 level.