US Stocks Surge Toward New Records on Strong Earnings, Lower Oil Prices

The US stock market is making a strong push towards new records as companies continue to deliver impressive profits and oil prices ease. The S&P 500 index has climbed 1.7% and is on track to top its all-time high set just a couple of months ago.

Corporate earnings are driving the rally, with many major companies exceeding analysts' expectations for profit and revenue growth. Palantir Technologies led the way, jumping 29.3% after reporting a 93% increase in revenue during the spring quarter.

Caterpillar also reported strong results, with its CEO citing strong order rates and a growing backlog across its main businesses. The heavy-equipment maker's shares climbed 6.5%. McDonald's added 0.9% after topping analysts' expectations for profit despite increased pressure from expensive gasoline and economic worries.

Analysts say the sharp increase in corporate profits is making stocks look less expensive relative to their current prices. Meanwhile, a decline in oil prices has helped ease concerns about inflation, leading to lower bond yields and reduced pressure on stock prices.