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Stocks rose on Tuesday, fueled by strong quarterly results from companies such as Palantir Technologies and Caterpillar, as oil prices dropped amid optimism that a U.S.-Iran deal to reopen the Strait of Hormuz could be on the horizon.
The Dow Jones Industrials shot higher 912.56 points, or 1.7% to reach noon EDT at 54,090.36, improving on Monday’s new record. The index was led by a 10% rise in Caterpillar.
The S&P 500 hiked 110.41 points, or 1.5%, to 7,710.91
The NASDAQ Composite raced 525.22 points, or 2%, to 26,438.99.
Treasury Secretary Scott Bessent said in an interview that “we are in talks with the Iranians.” He then added, “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.”
Caterpillar similarly reported better-than-expected Q2 numbers as well as upped its revenue growth guidance, with the industrial giant noting strong demand for its equipment. The company also said its tariff costs outlook for the full year should come in at the lower end of its previously expected range.
Palantir posted blowout results for the second quarter, which CEO Alex Karp described as “otherworldly” as a result of artificial intelligence sovereignty demand.
Notably, the company’s commercial revenue jumped 149% to $764 million. Karp also said that the “sovereign AI revolution makes us very optimistic about the future.”
Other tech names followed Palantir higher. Micron Technology gained 7%, while Marvell Technology advanced 12%.
Caterpillar similarly reported better-than-expected Q2 numbers as well as upped its revenue growth guidance, with the industrial giant noting strong demand for its equipment as the AI data center buildout ramps up across the country. The company also said its tariff costs outlook for the full year should come in at the lower end of its previously expected range.
Investors are closely watching SpaceX, which is set to report its first quarterly earnings as a public company later. The rocket company’s share price was up 3% during Tuesday’s session.
Prices for the 10-year Treasury rose, lowering yields to 4.63%. Treasury prices and yields move in opposite directions.
Oil prices cratered $4.86 to $75.48 U.S. a barrel.
Gold prices spiked $52.10 to $4,142.60 U.S. an ounce.
