Dow and S&P 500 Hit Record Highs on Strong Earnings and Crude Price Decline

The Dow Jones Industrial Average and S&P 500 hit record highs on Tuesday, buoyed by strong earnings from AI-linked companies. Caterpillar's 5.6% gain led the Dow, accounting for about 280 points of the upside.

Palantir Technologies soared 29.5%, its largest daily percentage gain since February 2024, after raising its annual revenue forecast.

A decline in crude prices also contributed to the rally, with oil prices dropping by around 5% on hopes for a diplomatic resolution to the Iran conflict.