US Stocks Surge Toward Record High as Profits Soar and Oil Prices Ease

The US stock market is surging toward a new record as companies continue to report strong profits and oil prices ease. The S&P 500 climbed 1.7% on Tuesday, with the Dow Jones Industrial Average adding 966 points (1.8%) to its own record set just yesterday.

Despite concerns about inflation, war in Iran, and a potential bubble in AI technology, Wall Street is nearing its latest peak thanks to soaring corporate earnings. Palantir Technologies led the way, jumping 29.3% after CEO Alex Karp said overall revenue leaped 93% in what he called an 'otherworldly' quarter.

Caterpillar also reported stronger profit and revenue than expected, with CEO Joe Creed citing strong order rates and a growing backlog across its main businesses. McDonald's added 0.9% after topping analysts' expectations for profit during the spring, despite increased pressure from expensive gasoline and economic worries.

The US economy remains resilient, with employers advertising nearly 7.4 million job openings at the end of June. The S&P 500 index is on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier, according to FactSet.