Dow jumps 907 as S&P 500, Nasdaq hit records on AI earnings
What's new: Oil fell about 5% and Treasury yields eased as traders bet a deal could reopen the Strait of Hormuz within days.
US stocks surged to fresh highs Tuesday, with the Dow Jones Industrial Average rising 907.47 points, the S&P 500 gaining 1.79% to 7,736.52 and the Nasdaq Composite climbing 2.59% to 26,584.99. The rally was driven by strong quarterly results from AI-linked companies and hopes for a diplomatic breakthrough in the Iran conflict that would reopen the Strait of Hormuz. Palantir jumped 29.5% after lifting its annual revenue forecast, while Caterpillar rose 5.6% after raising its growth outlook, helped by demand tied to AI data centers. Falling crude prices and lower Treasury yields also boosted sentiment as investors scaled back expectations for a Federal Reserve rate increase in September.