Palantir Technologies PLTR.O gained 16% in premarket trading after raising its annual revenue forecast again, while chipmaker On Semiconductor ON.O added 7.6% after forecasting quarterly revenue above expectations.
Caterpillar CAT.N, seen as a bellwether for the global industrial economy, gained 7.5% after raising its annual revenue growth forecast, benefiting from a buildout of AI data centers that has spurred demand for its power-generation and construction equipment.
Investors have been scrutinizing results from AI-linked companies this earnings season for signs that their billion-dollar investments are yielding returns. Strong results from AI leaders Microsoft MSFT.O and Amazon AMZN.O last week were a relief and have underpinned gains on Wall Street following a turbulent July.
"Momentum-driven sectors often overshoot in both directions. But it is important not to confuse a momentum unwind with a fundamental deterioration," said Brian Levitt, chief global market strategist at Invesco.
Among other AI-linked stocks, Micron MU.O added 4.6%, Nvidia NVDA.O rose almost 1.8% and Marvell MRVL.O climbed 8.2%.
Overall, this earnings season has so far been better than historical standards. Of the 304 companies in the S&P 500 that have reported second-quarter earnings as of Friday, 85.2% have beaten estimates, versus the long-term average of 67.5%.
Elon Musk's SpaceX SPCX.O will release its first earnings report since its public debut after markets close. The company's shares were up 2.2%.
Snap SNAP.N jumped 5.9% after beating second-quarter revenue estimates, thanks to increased advertising spending during the FIFA World Cup and stronger campaign activity from large advertisers in North America.
Shares of U.S. photonic firms Coherent COHR.N and Lumentum LITE.O added 13% each after Reuters reported the Trump administration is drafting a ban on U.S. imports of new models of Chinese data center components.
McDonald's MCD.N was flat after reporting disappointing results, while Pfizer PFE.N added 1% after its upbeat quarterly results.
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