US Stocks Soar to New Records Amid AI-Fueled Corporate Profits

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

Despite concerns over high inflation, the war in Iran, and potential bubbles in AI technology, investors remained patient as profits continued to soar for companies. Palantir Technologies led the way with a 29.5% surge after reporting a 93% increase in revenue for the spring quarter, exceeding analyst expectations.

Caterpillar also reported stronger-than-expected profit and revenue growth, marking its first time surpassing $20 billion in sales and revenue in a quarter. The company's CEO, Joe Creed, attributed the success to strong order rates and a growing backlog across its main businesses.