US stock futures rose on Tuesday, while oil prices fell as wary markets monitored a fragile US-Iran ceasefire in the wait for the latest rush of earnings.

S&P 500 futures (ES=F) moved up 0.3%, while those on the tech-heavy Nasdaq-100 (NQ=F) put on 0.5%. Dow Jones Industrial Average futures (YM=F) also edged up roughly 0.3%, with Wall Street stocks poised to rebound from a broad sell-off driven by rising Middle East tensions.

Oil prices pulled back from Monday’s surge as the US-Iran truce appeared to hold, despite exchanges of fire as both sides tried to exert control in the Strait of Hormuz. Brent (BZ=F) crude futures fell 1% to around $113 a barrel, while West Texas Intermediate (CL=F) crude traded at around $104.

Against that backdrop, investors are looking to earnings growth — solid this season so far — to provide fuel to keep this year’s rally in stocks going. On Tuesday, Advanced Micro Devices (AMD) results should shine light on the chip sector underpinning the AI boom, with Arm (ARM) reporting the following day.

On the AI flipside, Palantir (PLTR) shares slid after its results beat Wall Street estimates for first quarter revenue and profit, as questions linger about the impact of AI tools on its software business. Its revenue jump of 85% was driven by surging sales to the US government sector as well as commercial clients.

Tuesday’s earnings docket brings reports from Shopify (SHOP), Pfizer (PFE), Occidental (OXY), and Ferrari (RACE), among many big-name companies watched for the fallout from the Iran war.

On the economic data front, investors get fresh figures on the US trade balance and the latest Job Openings and Labor Turnover Survey (JOLTS) for insight into the strength of the economy.

Crypto exchange Coinbase (COIN) announced on Tuesday it plans to lay off 700 workers, or around 14% of its staff, in the coming weeks. The stock rose 4% in premarket trading.

Yahoo Finance’s David Hollerith reports:

The move is intended to manage operating expenses “in response to current market conditions” and “optimize the Company’s operations for the AI era,” according to a regulatory filing.

"Two forces are converging at the same time,” CEO Brian Armstrong said about the restructuring in social media post on X, adding, “We need to be front footed to respond to both." In addition to the cuts, Armstrong said Coinbase aims to have fewer "pure managers," by shrinking its organizational structure to a maximum of five layers between top executives and all of the firm's remaining 4,300 workers.

Coinbase’s stock has faced pressure so far this year as the crypto market has erased about $1.6 trillion in total market capitalization, according to CoinMarketCap data.

Coinbase also said it estimates total restructuring costs of $50 million to $60 million, with “substantially all” of those costs from employee severance and other termination charges.

Read more here.

Yahoo Finance’s Jared Blikre writes in the Chart of the Day:

The Dow transports are pouring cold water on Wall Street’s latest record run.

The Dow Jones Transportation Average (^DJT) just closed under its February breakout zone, erasing the entire April push that briefly carried the index to fresh highs near 25,000.

Transports had recently been one of the rally’s better confirmation points — part of the “most hated rally” that was still gaining strength in April. Now the breakout is gone.

High to low, transports are now down more than 20% from that late-April intraday peak — and the closing drawdown is getting uncomfortably close to bear market territory.

Read more here.

Shares in Palantir slid almost 3% in premarket trading on Tuesday as investors scrutinized its Q1 earnings beat and raised outlook.

Yahoo Finance’s Ines Ferré reports:

Palantir Technologies (PLTR) reported Q1 revenue and profit that topped analyst estimates, driven by surging sales to commercial clients and the US government sector.

The company’s revenue jumped 85% in the first three months of this year to $1.63 billion, beating the consensus estimate of $1.53 billion, according to Bloomberg data. The majority of that revenue, or $1.28 billion, came from the US alone.

CEO Alex Karp pushed back against those who bet against Palantir’s success and questioned the impact of AI on its business.

“When the whole world said software had to be worthless, we built platforms that work,” Karp said during the company’s earnings call.

… Shares of Palantir have been recovering from an earlier sell-off as the software sector has been hit amid concerns about AI disrupting business models.

Read more here.

Reuters reports:

Apple (AAPL) has held exploratory discussions about using Intel (INTC) and Samsung Electronics to produce ‌the main processors for its devices, Bloomberg ‌News reported on Monday, citing people familiar with the deliberations.

Apple executives ​have made visits to a Samsung plant under development in Texas and, separately, also held preliminary talks with Intel about enlisting the company's chipmaking services, Bloomberg reported.

While ‌the move would ⁠offer Apple a secondary option beyond its longtime partner Taiwan Semiconductor Manufacturing Co, the ⁠iPhone-maker is also concerned about using non-TSMC technology, the report said, citing worries about reliability and scale.

Read more here.

Bloomberg reports:

Oil held the bulk of a sharp gain after fighting flared in the Middle East, with the US and Iran exchanging fire, renewed attacks on energy infrastructure, and vessels hit near the Strait of Hormuz.

Brent (BZ=F) traded near $114 a barrel, after surging 5.8% on Monday, while West Texas Intermediate (CL=F) was below $105. The US military fought off Iranian attacks as it guided two US-flagged vessels through the waterway, according to US Central Command. In the United Arab Emirates, an oil terminal in Fujairah was hit.

The fresh round of hostilities came as the US sought to clear a path through Hormuz for stranded vessels, casting doubt on the four-week ceasefire between Washington and Tehran. President Donald Trump said the war may last another two to three weeks in comments to Salem News Channel.

US destroyers USS Truxtun and USS Mason transited the strait, CBS reported. The vessels were supported by Apache helicopters and other aircraft and faced a series of coordinated threats during the passage, CBS said.

Read more here.