US Stocks Soar as AI Boom and Lower Oil Prices Fuel Record Gains

The US stock market reached new record highs on Tuesday as companies' profits continued to rise and oil prices eased.

The S&P 500 index surged 1.8%, with the Dow Jones industrial average adding 907 points, or 1.7%, to its own record set just a day earlier.

Palantir Technologies led the way, jumping 29.5% after reporting a 93% increase in revenue for the spring quarter and raising its full-year forecast.

Caterpillar also reported stronger-than-expected profits and revenue, with its CEO saying it was seeing strong order rates and a growing backlog across its main businesses.

The AI boom is benefiting Caterpillar through increased orders for turbines used to power datacenters.

Companies in the S&P 500 index are on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier, according to FactSet.