Tuesday, February 3, 2026

AI Infrastructure Takes Center Stage; Nvidia Clarifies Investment

As U.S. markets remain closed in the pre-dawn hours, the focus shifts to a flurry of positive developments in the artificial intelligence infrastructure space, setting an anticipatory tone for Tuesday's open. Analysts are turning more bullish on key players like Amazon (AMZN), with KeyBanc raising price targets amid improved FY26 and FY27 estimates, reinforcing its position as a top AI data center stock. Similarly, Microsoft (MSFT) made headlines by launching its second-generation in-house AI processor, Maia 200, alongside new software tools. This move aims to narrow Nvidia's (NVDA) competitive moat, further intensifying the chip race. Elsewhere, BofA initiated coverage on AI data center provider Celestica (CLS) with a 'Buy' rating, and Digital Realty Trust (DLR) expanded its regional data center footprint in Malaysia, signaling robust demand for AI-enabling infrastructure.

Amidst this AI enthusiasm, Nvidia (NVDA) CEO Jensen Huang clarified that a reported $100 billion OpenAI chip plan was never a firm commitment, potentially easing some concerns about concentration risk following yesterday's pressure from OpenAI's exploration of alternative suppliers. However, Microsoft's (MSFT) own chip ambitions highlight growing competition in the sector. Meanwhile, the auto industry faces continued headwinds, with Detroit's 'Big Three' (including GM, F, STLA) facing potential production declines, even as Tesla (TSLA) attempts to bolster sales with a new Model Y variant after yesterday's significant share drop. Energy giant BP is also under scrutiny, challenged by shareholders over upstream oil and gas spending versus its climate strategy, adding another layer of corporate-specific risk to the global macro backdrop.

India Trade Deal Fuels Asia Rally; Auto Sector Faces Headwinds

U.S. markets remain closed for post-market trading, but global sentiment is being shaped by significant overnight developments. Asian equities saw a strong move higher, spearheaded by India's Nifty 50, which surged 5%. This rally followed news that U.S. President Donald Trump announced reciprocal tariff cuts with India, signaling a potential boost to international trade and providing an early 'Risk-On' signal for global markets.

This positive global tone could offer some tailwinds as U.S. futures begin to trade. However, sector-specific concerns are emerging, with reports indicating that Detroit's 'Big Three' automakers – including General Motors (GM), Ford (F), and Stellantis (STLA) – face potential production declines amid broader economic tensions. This follows earlier post-market news that Tesla (TSLA) introduced a new Model Y variant in an effort to bolster sales after yesterday's significant share decline.

Elsewhere, energy giant BP is facing scrutiny from shareholders over its upstream oil and gas spending amidst climate strategy debates. Investors will be watching how these diverse global and corporate headlines translate into futures action ahead of the U.S. open, alongside the lingering implications of Australia's recent rate hike, which highlighted persistent global inflation concerns.

Tesla Offers New Model Y After Sales Concerns; Macro in Focus

Following Monday's volatile session where U.S. equities largely ended flat, attention shifts to early post-market developments and global macro signals. Electric vehicle giant Tesla (TSLA) introduced a new all-wheel drive Model Y variant in the U.S., priced at $41,990. This move could provide some positive sentiment after TSLA shares plunged yesterday on reports of slowing sales in key international markets and a significant supplier deal collapse.

Elsewhere, AppLovin (APP) saw its stock lose 30% in January, highlighting continued pressure on some growth names after strong prior-year performance. On the global front, Australia's central bank raised interest rates for the first time since late 2023, citing six-quarter high inflation, signaling that global monetary tightening pressures may not be entirely behind us as investors look towards the upcoming trading day.