AI-Fueled Stocks Power Record-Breaking Peaks for Dow and S&P 500

The Dow Jones Industrial Average and S&P 500 reached new heights on Tuesday, driven by strong earnings reports from AI-focused companies.

Caterpillar's increase in its forecast for annual revenue growth, largely due to growing demand for power generation and construction equipment spurred by AI data center developments, led the charge. The company's shares surged nearly 10% after amplifying its forecast, contributing over 300 points to the Dow.

Palantir Technologies also saw a significant surge of nearly 30%, marking its largest daily increase since February 2024, following an upward revision of its annual revenue forecast.