US Stocks Soar to New Highs as AI Earnings and Oil Prices Boost Investor Confidence

The US stock market closed at record highs on Tuesday as strong earnings reports from AI-linked companies and oil price drops boosted investor confidence.

Palantir Technologies surged nearly 30% after raising its annual revenue forecast, while Caterpillar rose about 6% following an upgrade to its annual revenue-growth forecast.

The expansion of AI data centres has driven demand for Caterpillar's power-generation and construction equipment.

Crude oil prices fell around 5% on hopes of a diplomatic resolution to the Iran conflict, reducing expectations of a Federal Reserve rate hike in September.