S&P Hits Record Highs Amid AI Trade Boost, Energy Costs Decline

The S&P 500 reached new record highs by midday Tuesday after strong earnings reports from Palantir Technologies and Caterpillar.

Palantir stock jumped 27.4% after its revenue rose 93% to $1.94 billion, with U.S. commercial revenue up 149%, alongside a significant increase in full-year revenue guidance.

The AI trade got a boost from these earnings reports, with the Technology Select Sector SPDR Fund rising 4.4% and the semiconductor complex surging due to an optical and memory melt-up.

Meanwhile, energy costs declined, leading to a decrease in Treasury yields, with the 10-year yield falling five basis points to 4.63%.