US Stocks Soar to New Records Amid Corporate Profit Surge
US stocks surged to record highs on Tuesday as corporate profits continued to soar. The S&P 500 jumped 1.8%, reaching a new all-time high, while the Dow Jones Industrial Average added 907 points, or 1.7%, to its own record set the day before.
The rally was led by Palantir Technologies, which surged 29.5% after CEO Alex Karp reported a 93% increase in revenue for the quarter. The AI 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. The heavy-equipment maker is benefiting from the AI boom through increased orders for turbines used to power data centers, among other things.
Despite worries about high inflation, the war in Iran, and a possible bubble in stock prices due to the boom in artificial-intelligence technology, Wall Street hit its latest apex. Analysts warn that more swings could be ahead in oil prices, but the latest drop helped ease Wall Street's worries about inflation.