U.S. equities hit record highs after Treasury Secretary signals potential Hormuz Strait deal and corporate earnings exceed expectations.
The Dow Jones Industrial Average jumped 916 points, or 1.7%, to a record close on Tuesday, driven by optimism over U.S.-Iran negotiations. Treasury Secretary Scott Bessent indicated a deal to reopen the Strait of Hormuz could be reached within days, easing geopolitical tensions.
Oil prices fell sharply on the news, with West Texas Intermediate dropping 5% to $76 per barrel and Brent crude down 4% to near $79. The S&P 500 and Nasdaq also reached intraday highs, rising 1.5% and 2%, respectively, supported by strong corporate earnings.
Tech stocks led gains, with Palantir surging 27% after reporting “otherworldly” demand for AI sovereignty. Caterpillar climbed 6% on upbeat earnings and an improved revenue outlook, citing robust orders for AI data center construction.