US Stocks Rally Toward Record Highs Amid Strong Corporate Profits

The US stock market is nearing its latest record high due to strong corporate profits and easing oil prices. The S&P 500 briefly touched a 2% gain but pulled back to around 1.9%, putting it on track to surpass its all-time high set two months ago.

Palantir Technologies led the charge with a 30.2% surge after CEO Alex Karp reported a 93% revenue jump in what he called an 'otherworldly' quarter. Caterpillar followed suit, climbing 6.4%, as it posted stronger profit and revenue than expected for the spring.

Despite inflation concerns, corporate earnings are driving stock prices upward. Companies like Amazon, Microsoft, and McDonald's have also reported strong results, with S&P 500 index companies on track to deliver nearly 50% growth in earnings per share for the spring from a year earlier.