US Stocks Surge Toward Record High on Strong Earnings Outlook

The U.S. stock market surged toward an all-time high on Tuesday, with the S&P 500 rising 0.8 percent and nearing its August record close. The Dow Jones Industrial Average gained 343 points, while the Nasdaq reached another record high. Investors balanced concerns over inflation, geopolitical risks, and higher bond yields against strong corporate profit expectations. Falling oil prices and gains in artificial-intelligence-related stocks also supported the rally.

The S&P 500 has climbed nearly 24 percent since hitting a low in late March. Analysts predict S&P 500 companies will report nearly 30 percent year-over-year earnings-per-share growth for the July-through-September quarter, according to FactSet. Brent crude oil fell 1.1 percent to $99.19 per barrel, and the 10-year Treasury yield declined to 5.26 percent from 5.31 percent late Monday.

Lamb Weston shares rose 11.9 percent after the company reported higher-than-expected quarterly profit and revenue, raising its full-year underlying profit forecast. Constellation Energy gained 14 percent after announcing a long-term agreement to supply Google with electricity equivalent to a new nuclear reactor. Option Care Health soared 32.9 percent following a $5.8 billion acquisition deal by CD&R and McKesson.

Globally, European indexes ticked higher, while Asian markets showed mixed results. Japan’s Nikkei 225 jumped 1.1 percent, and Hong Kong’s Hang Seng climbed 1 percent, but South Korea’s Kospi dropped 0.9 percent. The rally reflects investor confidence in corporate profits despite ongoing economic challenges.