Wall Street Rallies to Records as Corporate Profits Soar and Oil Prices Ease
The US stock market surged to new records on Tuesday as corporate profits continued to soar and oil prices eased. The S&P 500 shot up 1.8%, with the Dow Jones Industrial Average adding 1.7% to its own record set the day before, and the Nasdaq composite jumping 2.6%. Palantir Technologies led the way after delivering a 'otherworldly' quarter with revenue leaping 93%, while Caterpillar climbed 6.6% on stronger profit and revenue than expected.
The profits come as companies in the S&P 500 index are on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier, according to FactSet. This would be the biggest such jump since 2021, when the economy was roaring back to life after cratering in the COVID-19 pandemic.
The drop in oil prices also contributed to the rally, with Brent crude falling below $80 per barrel. Analysts warned that more swings could still be ahead, but the latest drop helped ease Wall Street's worries about inflation, pulling down yields in the bond market and relaxing pressure on the overall economy and stock prices.