Nasdaq leads gains as oil eases, Palantir trades lower despite blowout earnings

• WTI crude fell 3.4% to below $103 per barrel after Hegseth said Iranian actions remain 'below the threshold for a wider conflict', down from $110+ last week when Trump threatened to 'blow the place apart' if Iran interfered with shipping
• 84% of S&P 500 companies reporting Q1 earnings have beaten consensus expectations, with 27.1% year-on-year earnings growth marking the strongest rate since Q4 2021
• Palantir Technologies traded lower in premarket despite blowout earnings that saw revenue surge 85% and net income quadruple, while probability of a Fed rate hike by year-end climbed to 24% from 0% a week ago

Market Summary: Nasdaq Gains as Oil Eases Amid Gulf Tensions

Market Performance:

US stocks are poised to open higher on May 5, 2026, with Nasdaq futures leading gains at +0.5%, followed by S&P 500 (+0.3%) and Dow Jones (+0.2%). The previous session saw the Dow fall 1.1% to 48,942, S&P slip 0.4% to 7,201, and Nasdaq dip 0.2% to 25,068.

Oil Market Dynamics:

WTI crude eased 3.4% to below $103/barrel from $106, down from $110+ last week. US Defense Secretary Pete Hegseth downplayed Strait of Hormuz tensions, calling Iranian actions "low level" despite nine vessel attacks and two ship seizures since the ceasefire. Iran has not claimed responsibility for the reported UAE Fujairah export hub attack. Hundreds of ships await passage through the strait, with approximately 22,500 mariners unable to transit.

Earnings Season Strength:

Q1 earnings are providing market support, with 84% of reporting S&P 500 companies (63% reported) beating earnings expectations and 81% exceeding revenue forecasts. Year-on-year earnings growth stands at 27.1%, potentially the strongest since Q4 2021.

Notable Company News:

Palantir Technologies traded lower despite reporting revenue that strongly beat expectations, quadrupled net income, and raised guidance. Apple held chipmaking talks with Intel and Samsung, signaling supply chain strategy shifts.

Federal Reserve:

Market expectations show 24% probability of a quarter-point rate hike before year-end, up from 0% a week ago.

Crypto:

Bitcoin climbed 3% to over $81,000, the highest level in three months, up 21% monthly.