US stock market hits record highs as AI profits pile and oil prices ease
S&P 500 shot up 1.8% and the main measure of Wall Street’s health topped its prior all-time high set a few months ago The US stock market rallied to records on Tuesday as profits kept piling up for companies and as oil prices eased. The S&P 500 shot up 1.8%, and the main measure of Wall Street’s health topped its prior all-time high set a couple months ago. The Dow Jones industrial average added…
On Tuesday, the US stock market soared to new records as corporate profits continued to rise and oil prices decreased. The S&P 500 climbed 1.8%, surpassing its previous all-time high, while the Dow Jones Industrial Average and Nasdaq Composite also hit new highs. Palantir Technologies led the market's upward trend, surging 29.5% after reporting a 93% increase in revenue for an "otherworldly" quarter.
Caterpillar saw a 5.6% increase after also beating expectations with stronger profits and revenue. The AI boom is driving increased demand for turbines that power datacenters. Corporate profits are up nearly 50% from a year earlier, making stocks appear less expensive compared to previous levels. Oil prices dropped 5.3%, with Brent crude falling to $79.36 per barrel, providing some relief from the market's previous volatility.
Higher yields on the 10-year treasury also impacted the bond market, affecting borrowing costs for Americans. Computer chip stocks saw significant gains, helping to boost the S&P 500, despite a decline for Chipotle Mexican Group due to concerns over potential losses following a salmonella outbreak.
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