Palantir set a bullish tone for the tech sector overnight, with its stock climbing more than 10% in extended trading following strong government contract gains. This positive momentum arrives alongside resilient U.S. manufacturing data, which reports factory growth at a four-year high despite elevated input costs. Meanwhile, oil markets remain jittery after a 7% slide, fueled by conflicting reports regarding potential diplomatic talks between Washington and Tehran. While the White House cited progress, Iranian officials maintained that regional discussions are limited to maritime security around the Strait of Hormuz.

Currency markets have entered a cooling-off period following last week’s intervention by Tokyo and Washington to bolster the yen. Investors are now watching to see if the currency will maintain its position above recent 40-year lows or if further intervention will be required. Elsewhere, the banking sector continues to show strength, with HSBC reporting a significant profit jump and the resumption of stock buybacks. Beyond corporate results, the U.S. labor market takes focus today with the release of June job openings data, acting as a precursor to Friday’s critical employment report.