The U.S. stock market rallied to records on Tuesday as profits mounted for AI companies, according to a report by the Associated Press.
The S&P 500 rose 1.8%, topping its prior all-time high set a couple of months ago.
The Dow Jones Industrial Average added 907 points, or 1.7%, to its own record set the day before, while the Nasdaq composite jumped 2.6%.
Palantir Technologies helped lead the way and surged 29.5% after CEO Alex Karp said its overall revenue leaped 93% in what he called an “otherworldly” quarter.
Besides reporting a stronger profit for the spring than analysts expected, the AI company also raised its revenue forecast for the full year of 2026.
This follows strong results from Amazon, Microsoft and others.
Caterpillar, which is benefiting from the AI boom through increased orders for turbines used to power data centers, climbed 5.6% after the heavy-equipment maker reported stronger profit and revenue than analysts expected.
It was the first time Caterpillar made more than $20 billion in sales and revenue in a quarter, and CEO Joe Creed said it’s seeing strong order rates and a growing backlog across its main businesses.
