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Stocks had a banner day Tuesday, with the S&P 500 and Dow Jones Industrial Average scaling to fresh record highs, thanks to strong earnings and another decline in oil prices driven by hope that the Strait of Hormuz could be reopened.
The 30-stock index shot higher 907.53 points, or 1.7% to greet the closing bell at 54,085.94, improving on Monday’s new record. The index was led by a 6% rise in Caterpillar.
The much-broader hiked 135.99 points, or 1.8%, to 7,736.49
The NASDAQ Composite raced 671.1 points, or 2.6%, to 26,584.99.
Beyond tech, which jumped 4%, other parts of the market saw solid gains. Financials advanced 1%, led by key stocks like Goldman Sachs, which gained more than 3%. Industrials and materials rose nearly 2% apiece.
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.”
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 $4.51 to $75.83 U.S. a barrel.
Gold prices spiked $48.20 to $4,138.70 U.S. an ounce.
