Stock Market Hits Record Highs on Strong AI-Linked Earnings
The stock market hit record highs on August 4, 2026, as investors cheered strong earnings from AI-linked companies. The S&P 500 and Dow Jones Industrial Average both reached new peaks after Caterpillar and Palantir raised their revenue forecasts.
Caterpillar gained 12% after increasing its annual revenue growth forecast, while Palantir surged 17.4% after boosting its own revenue outlook. These results are a relief to investors who have been scrutinizing AI-linked companies' earnings for signs of sustainability.
Eric Parnell, chief market strategist at Great Valley Advisor Group, noted that the AI earnings performance has been 'fantastic', but the big question is whether it will be sustainable. If so, investors will need to separate winners from losers.