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Market Indexes Bounce Back to Start a New Trading Week

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Key Takeaways

  • Markets Bounces Back Monday After an Off Trading Week
  • ISM Manufacturing Swings to Positive Territory
  • Palantir and NXP Semi Report Earnings Beats After the Bell

Monday, February 2nd, 2026

Markets bounced back from a tough trading week last week. We even started this first trading session of the week in the red, but quickly reversed course. Closing off the highs, we still saw a constructive start to the week: the Dow rose +515 points, +1.05%, the S&P 500 was +37, +0.54%, the Nasdaq +130 points, +0.56% and the small-cap Russell 2000 +24 points, +0.95%.

Aside from good earnings results from Disney (DIS - Free Report) and other companies ahead of the open (despite the stock’s -7% drop today), the market was also treated to strength in both S&P Manufacturing PMI and ISM Manufacturing, both for January. The S&P print rose 60 basis points (bps) from the last report to 52.4%, while ISM Manufacturing jumped +4.7% to 52.6%. Both are healthy and comfortably above the 50-level, which illustrates growth versus loss.
 

Q4 Earnings Reports After the Close


Data analytics giant Palantir (PLTR - Free Report) came out with Q4 earnings after the bell, where it posted modest beats on both top and bottom lines. Earnings of 25 cents per share surpassed expectations by 2 cents, while $1.4 billion in revenues stepped beyond the $1.35 billion analysts were expecting. U.S. revenues grew +93% over the past year, over $1 billion for the first time, with government revenues improving to $570 million in the quarter. Shares are +5% in after-hours trading on the news.

NXP Semiconductor (NXPI - Free Report) , a tech component supplier with vast exposure to the auto industry, beat Q4 earnings estimates by a solid nickel to $3.35 per share, with revenues of $3.34 billion improving over the $3.30 billion in the Zacks consensus. Auto industries were in-line with expectations, as was overall margins of +57%. Shares are -4.5% on the news; next-quarter’s revenue guide is only partially raised from previous estimates.
 

What to Expect from the Market Tomorrow


Tuesday kicks off Jobs Week with the December print of the Job Openings and Labor Turnover Survey (JOLTS), which is expected to remain at a relatively low 7.1 million. S&P Services PMI and ISM Services, both for January, come out tomorrow after the open, as well. These are also expected to easily clear the 50-level on both prints.

Earnings pick up the pace Tuesday, with PayPal (PYPL - Free Report) , Merck (MRK - Free Report) , PepsiCo (PEP - Free Report) and Shopify (SHOP - Free Report) reporting earnings results ahead of the open. After the close, major semi company AMD (AMD - Free Report) numbers hit the tape.

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