The S&P 500 touched a fresh all-time intraday high and the Dow Jones Industrial Average jumped 916 points on Tuesday, as strong earnings from Palantir and Caterpillar met falling oil prices tied to hopes for a U.S.-Iran deal on the Strait of Hormuz. Treasury Secretary Scott Bessent said talks could produce an agreement within a day, sending crude lower.
The S&P 500 gained 1.5% and hit a fresh all-time intraday high on Tuesday. The Dow Jones Industrial Average climbed 916 points, or 1.7%, also touching a record. The Nasdaq Composite popped 2% as Palantir rallied 27% and Caterpillar rose 6%.
Monday's session had already pushed the Dow to a record close, and Amazon eclipsed $3 trillion in market cap for the first time. Nvidia and Meta shares also rose that day, along with Alphabet and Microsoft.
Bessent points to a possible Hormuz deal
Treasury Secretary Scott Bessent said in an interview on CNBC's "Squawk Box" that "We are in talks with the Iranians." He added there is a chance a deal could come as soon as Tuesday or Wednesday to reopen the Strait of Hormuz and move toward a more normalized position in the conflict.
Oil prices moved lower after his remarks. West Texas Intermediate futures dropped 4% to around $76 a barrel. Brent crude declined 4% to roughly $80 a barrel.
Earnings keep beating estimates
More than 84% of S&P 500 companies that have reported earnings have topped expectations, according to FactSet. Palantir's commercial revenue jumped 149% to $764 million, a result CEO Alex Karp attributed to demand for artificial intelligence sovereignty.
Caterpillar also topped estimates and raised its revenue growth guidance, citing strong demand for equipment as the AI data center buildout continues. The company said its full-year tariff cost outlook should land at the lower end of its previous range. Other tech names followed Palantir higher: Micron gained 7% and Marvell Technology advanced 12%.
Source: CNBC
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