US Stocks Surge Toward Record High Amid Corporate Earnings Boom

The US stock market is making significant gains on Tuesday, pushing toward a record high. This comes as companies continue to report robust profits and oil prices ease.

Caterpillar climbed 6.5% after the heavy-equipment maker reported stronger profit and revenue than analysts expected. Palantir Technologies also led the way, jumping 29.3% after CEO Alex Karp said its overall revenue leaped 93% in what he called an 'otherworldly' quarter.

The rally is largely due to soaring corporate profits, which are up nearly 50% in earnings per share for the spring from a year earlier, according to FactSet. This growth has made stock prices less expensive compared to their previous value, according to Phil Segner, a co-portfolio manager at the Leuthold Group.

The decline in oil prices also contributed to the market's gains, with Brent crude falling 4.9% to $79.64 per barrel. This drop eased Wall Street's worries about inflation and relaxed pressure on the overall economy and stock prices.