Dow Soars 900 Points as Corporate Earnings and Iran Deal Hopes Lift Stocks
The US stock market surged to record highs on Tuesday as investors were buoyed by strong corporate earnings, hopes of a deal to reopen the Strait of Hormuz, and solid hiring numbers. The Dow Jones Industrial Average jumped 907 points, or 1.7%, while the S&P 500 climbed 136 points, or 1.8%.
Corporate profits played a significant role in the market's rise, with companies such as Caterpillar and Palantir Technologies reporting second-quarter results that exceeded analysts' expectations. Shares of Palantir Technologies surged 29.3% after CEO Alex Karp said revenue leaped 93% in what he called an 'otherworldly' quarter.
The market was also boosted by a drop in oil prices, with Brent crude falling 4.9% to $79.64 per barrel as hope of a deal took over from fear. Treasury Secretary Scott Bessent said on CNBC that a US deal with Iran could soon be within reach, and that there's 'a chance we may have a deal today or tomorrow to open the Strait.'