Dow leaps 1,000 points fueled by earnings, hopes for Hormuz Strait deal; S&P 500 hits record: Live updates

The stock market witnessed a banner day on Tuesday, with major indexes hitting fresh record highs. The S&P 500 and Dow Jones Industrial Average both scaled new peaks, driven by strong earnings reports and hopes for a deal opening the Strait of Hormuz. The broad market index gained 1.8%, while the Nasdaq Composite surged 2.4%. Palantir Technologies led the tech rally, jumping 29% after reporting impressive second-quarter results.

Caterpillar topped the Dow with a 6% rise, marking a new intraday record. Financials advanced 1%, with Goldman Sachs leading the gainers. Oil prices dropped after Treasury Secretary Scott Bessent hinted at a possible deal to reopen the Strait, sending West Texas Intermediate futures down 5% to around $76 per barrel. Chip stocks also rallied, continuing their recovery from a July slump.

Micron Technology gained 8% and Marvell Technology advanced 13%. The earnings season has been strong, with over 84% of S&P 500 companies beating expectations. Fed officials, including Philadelphia Federal Reserve President Anna Paulson, believe current interest rates are sufficient to keep inflation moving toward their 2% target.