Stocks Hit New Records as Corporate Profits Soar, Oil Prices Ease

The US stock market reached new records on Tuesday as corporate profits continued to soar and oil prices eased. The S&P 500 rose 1.8%, surpassing its previous all-time high, while the Dow Jones Industrial Average added 907 points, or 1.7%, to its own record set the day before.

The surge in stocks was led by Palantir Technologies, which jumped 29.5% after reporting a 93% increase in revenue for the quarter and raising its revenue forecast for the full year of 2026. Caterpillar also climbed 5.6% after beating analysts' expectations with its profit and revenue results.

Despite concerns about high inflation and the impact of AI technology on stock prices, investors remained optimistic as corporate profits continued to rise. The S&P 500 companies are on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier, according to FactSet.