AI Demand Boosts S&P 500 and Dow Jones to Record Highs

The S&P 500 and Dow Jones Industrial Average hit record highs on Tuesday as strong earnings reports from companies like Caterpillar and Palantir reassured investors about artificial intelligence-driven demand.

Caterpillar's shares rose 5.8% after the company raised its annual revenue growth forecast, benefiting from a buildout of AI data centres that has spurred demand for its power-generation and construction equipment.

Palantir Technologies soared 26% after raising its annual revenue forecast again, with investors scrutinizing results from AI-linked companies this earnings season for signs that their investments are yielding returns.