AI-Linked Earnings Send Dow and S&P 500 Soaring to New Records

The Dow Jones Industrial Average and the S&P 500 both closed at record highs on Tuesday, driven by a strong batch of earnings reports from companies linked to artificial intelligence.

Caterpillar, seen as an indicator for the global industrial economy, saw its stock jump 5.6% after raising its annual revenue growth forecast due to demand for power-generation and construction equipment.

Palantir Technologies soared 29.5%, making it the biggest boost to the Dow Industrials, with investors closely monitoring results from AI-linked companies this earnings season for signs that massive spending in the space will be justified.