US Stocks Surge to New Records Amid AI-Fueled Earnings and Diplomatic Hopes

The US stock market closed at record highs on Tuesday, August 4, driven by strong earnings from AI-related companies and hopes for a diplomatic resolution to the conflict in the Middle East.

Caterpillar, seen as a bellwether for the global industrial economy, jumped 5.6% after raising its annual revenue growth forecast, with the buildout of AI data centers fueling demand for its power-generation and construction equipment.

Palantir Technologies soared 29.5%, recording its biggest daily percentage gain since February 2024, after boosting its annual revenue forecast.

The Dow Jones Industrial Average rose 907.47 points to close at a record high of 54,085.88, while the S&P 500 gained 136.02 points to reach 7,736.52, also setting a new closing record.