Caterpillar's Record-Breaking Rally Drives Dow Jones to New Heights

The Dow Jones Industrial Average reached an all-time high of over 54,100 on Tuesday, surpassing its previous peak just over 53,300 set in early July. This marks a fourth consecutive session of gains and a near 5% increase since the July decision.

The largest single-name move of the session belonged to Caterpillar (CAT), which rose 6% after beating second-quarter earnings expectations and raising its revenue growth guidance. The stock's price movement contributed around six index points for every dollar, implying that Caterpillar was responsible for roughly a third of the Dow's record gain.

Other stocks like Palantir (PLTR) and Micron (MU) also saw significant gains, but they are not part of the Dow Jones Industrial Average due to their membership status. The index's price-weighted calculation means that its performance is heavily influenced by the share prices of its constituent companies.

Meanwhile, a deal between Washington and Tehran to reopen the Strait of Hormuz could have implications for crude oil prices. Treasury Secretary said in an interview that talks are ongoing, but progress remains elusive. The Strait's closure has had a significant impact on global energy markets, with Brent crude oil prices falling 4% to around $80 per barrel.