US Stocks Hit Records as Profits Soar Despite Inflation Concerns

The US stock market reached new records on Tuesday as profits continued to soar for companies like Palantir and Caterpillar. The S&P 500 surged 1.8%, with the main measure of Wall Street's health topping its prior all-time high set a couple months ago. The Dow Jones Industrial Average added 907 points, or 1.7%, to its own record set the day before.

Palantir Technologies led the way, surging 29.5% after CEO Alex Karp said its overall revenue leaped 93% in what he called an 'otherworldly' quarter. The company also raised its revenue forecast for the full year of 2026. Caterpillar climbed 5.6% after reporting stronger profit and revenue than analysts expected, with CEO Joe Creed citing strong order rates and a growing backlog across its main businesses.

The rally was helped by another drop in oil prices, with Brent crude sinking 5.3% to $79.36 per barrel. This eased worries about inflation, which had been a concern for investors. Despite these concerns, corporate profits continue to rise, with companies in the S&P 500 index on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier.