US Stocks Rally to Records as Profits Soar and Oil Prices Ease

The US stock market surged to new records on Tuesday, driven by companies' soaring profits and lower oil prices. The S&P 500 index rose 1.8%, while the Dow Jones Industrial Average added 1.7% to its previous record high set the day before.

Palantir Technologies led the charge with a 29.5% gain after reporting a 93% increase in revenue and raising its full-year forecast. Caterpillar also climbed 6.6%, thanks to strong profits and revenue, as well as increased orders for AI-related equipment.

The rally was further boosted by lower oil prices, with Brent crude falling below $80 per barrel. This eased concerns about inflation, pulling down yields in the bond market and relaxing pressure on the overall economy and stock prices.