S&P 500 rises nearly 2%, Dow Jones settles above 54,000 on earnings, Hormuz deal optimism

In a blockbuster Tuesday, the Dow Jones Industrial Average and the S&P 500 scaled their new record highs due to strong earnings and falling oil prices amid optimism that the Strait of Hormuz could be reopened.

The Dow Jones Industrial Average surged 1.71% to 54,085.88, while the S&P 500 gained 1.79% to 7,736.52. The NASDAQ Composite advanced 2.59% to 26,584.99.

It was the first time that the Dow Jones settled over 54,000 and the S&P closed above the mark of 7,700.

Palantir Technologies shares gained over 29% as the company sees a full-year revenue of $8.16 billion against previous estimates between $7.65 billion and $7.66 billion. "This quarter was otherworldly: our U.S. commercial revenue grew 149% year-over-year, our overall revenue grew 93% year-over-year. The sovereign AI revolution makes us very optimistic about the future," Palantir's CEO Alex Karp said.

Caterpillar Inc shares ended 5.6% higher at $876.54 after posting record Q1 earnings with a rising full-year revenue outlook and $20.5 billion in sales in the quarter ended June 2026.

Marvell technology gained nearly 13%, while Micron Technology climbed more than 7%.

Shares of McDonald's surged over 1% after it recorded earnings of $3.38 per share, on an adjusted basis, as against the LSEG consensus of $3.32 per share. However, revenue, which stood at $7.1 billion, missed the market estimate of $7.13 billion.

US Secretary of State Marco Rubio said that progress has been made in talks with Iran and Oman on opening the Strait of Hormuz, although no final agreement has been reached. “There’s been progress made in those talks, but not finality yet. ⁠We’re hoping that will happen very shortly,” he told reporters ‌at the US state department.