Dow and S&P 500 Soar to New Records on AI-Linked Earnings and Mideast Deal Hopes

The Dow and S&P 500 closed at record highs on Tuesday, propelled by earnings from AI-related companies like Palantir and NVIDIA.

NVIDIA's stock soared 29.5%, its biggest daily gain since February 2024, after the company raised its annual revenue forecast.

Caterpillar, seen as a bellwether for the global industrial economy, jumped 5.6% after increasing its annual revenue growth forecast, driven by demand for AI data centers.

The move in Caterpillar accounted for about 280 points to the upside for the Dow Industrials.