The S&P 500 closed at a record high of 7,736.52 on Tuesday, rising 1.8% (or 1.79% by another count). The Dow Jones industrial average added 907.47 points to finish at a record 54,085.88, a gain of 1.7% (or 1.71% by another tally). The Nasdaq composite rose to 26,584.99, up 2.6% (or 2.59% by another measure).
Palantir Technologies shares surged after the company reported strong second-quarter results and raised its full-year revenue forecast. The stock jumped 29.5% (or 29.4% by another account), with some noting criticism over its support for Israel's war in Gaza. CEO Alex Karp called the quarter "otherworldly" as overall revenue leaped 93%.
Caterpillar reported quarterly profit and revenue above analyst expectations, driven by strong demand for equipment used in AI data centers. The stock climbed 5.6% (or 5.4% by another count). CEO Joe Creed said the company was seeing strong order rates and a growing backlog across its main businesses. The company surpassed $20 billion in sales and revenue in a single quarter for the first time.
Caterpillar's quarterly sales and revenue, a first for the company
Brent crude oil prices declined on Tuesday. US Treasury Secretary Scott Bessent said Washington and Tehran were holding talks to reopen the Strait of Hormuz.
The yield on the US 10-year treasury fell to 4.62% from 4.70% on Monday (source: claim:11).
Chipotle Mexican Group shares fell 9.7% after removing jalapeños from some restaurants due to a salmonella outbreak. The company stated that Minnesota, US health officials have no ongoing concerns with the chain.
Amazon shares fell 2.3% following a regulatory filing showing founder Jeff Bezos planned to sell around $4 billion worth of shares. Amazon's market capitalization surpassed $3 trillion for the first time on Monday.
European stock markets ended Tuesday's session higher, with Spain's IBEX 35 rising 0.21% to close above 20,000 for the first time.
According to FactSet, companies in the S&P 500 index were on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier. Phil Segner, a co-portfolio manager at the Leuthold Group, said stocks do not look as expensive as they did before due to rising corporate profits.
