Stock market today: Live updates

Stocks rose on Tuesday, fueled by strong quarterly results from companies such as Palantir Technologies and Caterpillar, as oil prices dropped amid optimism that a U.S.-Iran deal to reopen the Strait of Hormuz could be on the horizon.

The S&P 500 gained 1.3% and had hit a fresh all-time intraday high, while the Nasdaq Composite popped 1.9%, as Palantir rallied 27%. The Dow Jones Industrial Average climbed 809 points, or 1.5%, led by a 5% rise in Caterpillar. The 30-stock index also notched a new record high.

Treasury Secretary Scott Bessent said in an interview on CNBC’s “Squawk Box” that “we are in talks with the Iranians.” He then added, “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.”

Oil prices moved lower following Bessent’s comments, with West Texas Intermediate futures dropping 4% to around $76 per barrel. Brent crude, the international benchmark, declined 4% to roughly $80 a barrel.

The major stock averages surged in Monday’s session, with the Dow closing at a record high, as Amazon eclipsed $3 trillion in market cap for the first time. Nvidia shares also ripped higher along with Meta Platforms. Google parent Alphabet and Microsoft also popped during the day.

“From watching the stock market zoom higher over the past three sessions, you wouldn’t think there’s anything wrong with the world,” said Thierry Wizman, global FX & rates strategist at Macquarie Group. “After all, even the semiconductor makers have recovered from their big skid in July after some AI hyperscalers managed to quell analysts’ fears about whether their data center investments are excessively eating into cash-flow. And so far, U.S. quarterly earnings reports haven’t disappointed, in aggregate.”

According to FactSet, more than 84% of S&P 500 companies that have reported earnings have beaten expectations.

Palantir posted blowout results for the second quarter, which CEO Alex Karp described as “otherworldly” as a result of artificial intelligence sovereignty demand. Notably, the company’s commercial revenue jumped 149% to $764 million. Karp also said that the “sovereign AI revolution makes us very optimistic about the future.”

Other tech names followed Palantir higher. Micron Technology gained 7%, while Marvell Technology advanced 12%.

Caterpillar similarly reported better-than-expected Q2 numbers as well as upped its revenue growth guidance, with the industrial giant noting strong demand for its equipment as the AI data center buildout ramps up across the country. The company also said its tariff costs outlook for the full year should come in at the lower end of its previously expected range.

Investors are closely watching SpaceX, which is set to report its first quarterly earnings as a public company later. The rocket company’s share price was up 3% during Tuesday’s session.