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US stocks rally to record highs as AI profits grow and oil eases
The S&P 500 gained 1.8%, the Dow rose 1.7%, and the Nasdaq jumped 2.6% as results from AI and industrial names helped drive the move.
US stocks pushed to fresh record highs on Tuesday, extending a rally fueled by company profit growth and a pullback in oil prices. The S&P 500 climbed 1.8% and topped its prior all-time high, while the Dow Jones industrial average added 907 points, or 1.7%, and the Nasdaq composite rose 2.6%.
Palantir Technologies led the charge, surging 29.5% after its CEO, Alex Karp, said overall revenue jumped 93% in what he described as an “otherworldly” quarter. The company also reported a stronger spring profit than analysts expected and raised its revenue forecast for 2026.
Caterpillar also gained, rising 5.6% after it posted stronger profit and revenue than analysts anticipated. The heavy-equipment maker said it marked the first time it had more than $20 billion in sales in a quarter, with CEO Joe Creed pointing to strong order rates and a growing backlog, including increased orders for turbines used to power data centers.
The broader earnings backdrop remained strong, with companies in the S&P 500 on track to deliver nearly 50% growth in spring earnings per share from a year earlier, according to FactSet. Brent crude fell 5.3% to $79.36 per barrel, while Phil Segner, a co-portfolio manager at the Leuthold Group, said that with corporate profits up and stock prices still near levels from two months ago, stocks do not look as expensive as before.
Latest closeWTI crude $75.32 ▼6.2%|Brent $78.86 ▼5.9%|S&P 500 7,736.52 ▲1.8%