US Stocks Soar to Records Amid Easing Oil Prices and Strong Corporate Profits

The US stock market surged to new records on Tuesday, fueled by strong corporate profits and easing oil prices. The Dow Jones Industrial Average jumped 907 points, or 1.7%, to a record high, while the S&P 500 rose 1.8% to top its prior all-time high. Despite concerns about inflation and the war in Iran, investors remained patient as profits continued to soar for companies.

Palantir Technologies led the way, surging 29.5% after reporting a 93% jump in revenue. CEO Alex Karp described the quarter as 'otherworldly', while also raising the company's revenue forecast for the full year of 2026. Caterpillar also reported strong profits and revenue, climbing 5.6%, and benefiting from the AI boom through increased orders for turbines used to power data centers.

With corporate profits up nearly 50% in earnings per share for the spring from a year earlier, according to FactSet, stocks don't look as expensive as they did before, according to Phil Segner, co-portfolio manager at the Leuthold Group. The drop in oil prices also eased worries about inflation, with Brent crude falling 5.3% to $79.36 per barrel.