US Stocks Soar on Deal Hopes and Blowout Earnings

The US stock market surged on Tuesday after Treasury Secretary Scott Bessent hinted at a potential deal to reopen the Strait of Hormuz, easing concerns about global energy prices and inflation.

Strong corporate earnings also fueled the rally, with companies like Caterpillar and Palantir Technologies exceeding analysts' expectations. Shares of Palantir rose 29.3% after its CEO Alex Karp said revenue leaped 93%, calling it an 'otherworldly' quarter.

The Dow Jones Industrial Average jumped 1,007 points, or 1.9%, while the S&P 500 climbed 142 points, or 1.9%. Brent crude oil prices sank 4.9% to $79.64 per barrel as hope for a deal took over from fear.

Investors are cautiously optimistic about an end to the Iran war, but have been disappointed before. According to Wall Street analyst Adam Crisafulli, 'the equity rally is being driven by blowout earnings and positive remarks from Bessent'.