S&P 500, Dow close at records as AI earnings lift Wall Street
What's new: Palantir jumped 29.5%, Caterpillar rose 5.6%, and falling oil and Treasury yields added to the rally.
The S&P 500 and Dow Jones Industrial Average closed at record highs Tuesday, extending Wall Street’s rally as upbeat forecasts from AI-linked companies and easing Middle East tensions boosted risk appetite. The S&P 500 gained 136.02 points, or 1.79%, to 7,736.52, while the Dow rose 907.47 points, or 1.71%, to 54,085.88. The Nasdaq Composite climbed 671.10 points, or 2.59%, to 26,584.99. Palantir Technologies surged 29.5% after raising its annual revenue forecast, and Caterpillar added 5.6% after lifting its annual revenue growth outlook on demand tied to AI data centers. Oil fell about 5%, while Treasury yields retreated as investors bet progress toward reopening the Strait of Hormuz could reduce pressure on energy prices and the Federal Reserve.