US Stocks Surge Toward Record High Amid Corporate Profit Boom

The US stock market is experiencing a surge, nearing a record high as companies continue to report strong profits and oil prices ease. The S&P 500 climbed 1.7% and is on track to top its all-time high set a couple of months ago. Palantir Technologies led the way with a 29.3% increase after reporting a 93% jump in revenue, which it called an 'otherworldly' quarter.

Caterpillar also reported stronger profit and revenue than analysts expected, making more than $20 billion in sales and revenue for the first time. The AI boom is benefiting Caterpillar through increased orders for turbines used to power data centers. McDonald's added 0.9% after topping analysts' expectations for profit during the spring.

With corporate profits up so much while stock prices are still roughly where they were two months ago, they don't look as expensive as before, according to Phil Segner of the Leuthold Group. Oil prices also helped ease Wall Street's worries about inflation by dropping 4.9% to $79.64 per barrel.