Caterpillar and Palantir surge after beating Q2 2026 estimates, driving broad market gains across major indexes.
U.S. stocks rallied Tuesday as strong earnings from Caterpillar and Palantir lifted the Dow Jones Industrial Average by 800 points, or 1.5%. The S&P 500 and Nasdaq Composite rose 1.3% and 1.9%, respectively, with gains spreading across sectors from the opening bell.
Caterpillar led the Dow with a 6% gain, contributing nearly 300 points after reporting a 17% revenue increase in Q2 2026. Its power and energy division saw sales jump 29% year over year. Palantir surged 27% as U.S. commercial adoption of its AI platform outpaced expectations, marking its second-largest contribution to Nasdaq and S&P 500 gains.
The rally followed Monday’s gains driven by falling oil prices, but Tuesday’s moves were underpinned by solid corporate performance, signaling potential for sustained market strength.