AI-Linked Earnings Lift S&P 500, Dow Jones to Record Highs

The S&P 500 and Dow Jones Industrial Average closed at record highs on August 4, driven by strong earnings reports from companies linked to artificial intelligence (AI) spending.

Palantir Technologies led the charge with a nearly 30% jump, its biggest daily percentage gain since February 2024. The company raised its annual revenue forecast, boosting investor confidence in AI-related stocks.

Caterpillar also performed well, increasing its annual revenue growth forecast due to growing demand for power-generation and construction equipment fuelled by the buildout of AI data centres.

The move in Caterpillar made it the largest contributor to the Dow's gain, accounting for over 300 points. The Philadelphia Semiconductor index surged nearly 7%, as chip stocks benefited from AI-spending expectations.