US Stocks Surge as Corporate Profits Soar and Oil Prices Ease

The US stock market is nearing its latest record high as corporate profits continue to soar and oil prices ease. The S&P 500 has risen 1.9% and is on track to surpass its all-time high set a couple months ago. The Dow Jones Industrial Average added 1,009 points, or 1.9%, to its own record set the day before, while the Nasdaq composite was 2.6% higher.

Caterpillar climbed 6.6% after reporting stronger profit and revenue than analysts expected, making it the first time the heavy-equipment maker made more than $20 billion in sales and revenue in a quarter. Palantir Technologies also led the way with a 29.5% surge after its CEO said overall revenue leaped 93%.

The AI boom is benefiting companies like Caterpillar through increased orders for turbines used to power data centers, among other things. Corporate profits are up so much that stocks don't look as expensive as they did before, according to Phil Segner of the Leuthold Group.