Stocks Soar as Caterpillar and Palantir Fuel Record Highs

Stock markets around the world reached record highs on Tuesday after several major companies reported strong earnings and raised their annual revenue forecasts. The Dow Jones Industrial Average surged 907.47 points, or 1.71%, to 54,085.88, while the S&P 500 gained 136.02 points, or 1.79%, to 7,736.52.

The pan-European STOXX 600 index also reached a record high close, rising 0.73% to 656.86. Technology stocks drove the gains in Europe, along with corporate earnings updates from various companies.

Caterpillar's shares rose after the company increased its annual revenue growth forecast, citing strong demand for its products in AI data centers. Palantir Technologies also saw its shares surge as it raised its annual revenue forecast.

The Japanese yen weakened slightly, but held onto most of its gains following last week's joint intervention by Tokyo and Washington to support the currency.

Oil prices fell sharply, with Brent crude futures dropping $4.41, or 5.3%, to settle at $79.36 a barrel, their lowest level since July 13. U.S. West Texas Intermediate futures dropped $4.57, or 5.7%, to settle at $75.77 a barrel, also hitting a three-week low.

Investors attributed the market gains to 'stronger earnings and stronger expectations', according to Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut.