US Stocks Surge Toward New Records on Strong Profits and Easing Oil Prices
The US stock market is on track to hit new records as companies continue to report higher profits and oil prices ease. The S&P 500 has already reached a 1.8% increase, surpassing its previous all-time high set in June. The Dow Jones Industrial Average also saw a 1.7% gain, reaching a new record.
The surge in stock prices is largely due to the strong profits reported by companies such as Palantir Technologies and Caterpillar. Palantir's revenue jumped 93% in what CEO Alex Karp called an 'otherworldly' quarter. Caterpillar also exceeded analyst expectations with its profit and revenue, benefiting from increased orders for turbines used in AI data centers.
Despite some concerns about inflation and a possible bubble in stock prices due to the AI boom, Wall Street remains optimistic. Analysts point out that corporate profits are up significantly, which typically follows stock prices over the long term. The yield on 10-year Treasury notes also fell to 4.63% from 4.70% Monday, easing pressure on the overall economy and stock prices.