US Stocks Soar to New Records Amid Easing Oil Prices

The US stock market hit new records on Tuesday as companies continued to post strong profits and oil prices eased. The S&P 500 shot up 1.8%, while the Dow Jones Industrial Average added 907 points, or 1.7%, to its own record set the day before.

Palantir Technologies surged 29.5% after reporting a 93% increase in revenue and raising its forecast for the full year of 2026. Caterpillar climbed 5.6% as the heavy-equipment maker also reported stronger profit and revenue than expected, benefiting from the AI boom through increased orders for turbines used to power data centers.

Despite worries about high inflation, the war in Iran, and frustration with the economy, stock prices tend to follow the path of corporate earnings over the long term. With corporate profits up so much, stocks don't look as expensive as they did before, according to Phil Segner, a co-portfolio manager at the Leuthold Group.

The drop in oil prices also helped ease Wall Street's worries about inflation. Brent crude sank 5.3% to $79.36 per barrel as hope once again took over from fear in the oil market.