US stock indexes climbed Tuesday as megacap and AI-linked technology stocks gained ground, helping lift the S&P 500 and the Dow Jones Industrial Average to record highs while the Nasdaq 100 logged its strongest level in more than two weeks. At midday, the S&P 500 was up 0.73%, the Dow was higher by 1.03%, and the Nasdaq 100 rose 2.00%, with September E-mini S&P and Nasdaq futures also trending higher.
Investors pointed to a wave of earnings results as a key driver. Palantir Technologies surged after reporting stronger-than-expected quarterly revenue and raising its full-year revenue outlook, while Zebra Technologies jumped on better-than-expected earnings and guidance. Caterpillar climbed following an adjusted profit figure that topped consensus, while broader market strength was reinforced by a slide in crude oil prices and continued optimism around second-quarter earnings growth.
Key takeaways
- Index moves: The S&P 500 rose 0.73%, the Dow gained 1.03%, and the Nasdaq 100 climbed 2.00%.
- Catalyst: Better-than-expected earnings results—especially in technology and AI-infrastructure—drove most of the upside.
- Macro link: Falling crude oil prices helped ease inflation concerns, supporting both equities and government bonds.
- Rates implication: Markets continued to price a high probability of a policy-rate increase ahead of major central bank meetings.
- What to watch: Follow-through in earnings guidance and energy-price volatility remain key near-term signals for risk appetite.
What drove the move
Technology stocks led the advance after several high-profile earnings reports exceeded expectations. Bloomberg Intelligence’s compiled outlook suggested second-quarter earnings growth is on track to strengthen, with earnings projected to rise about 23% versus the prior year. The same dataset pointed to AI spending as a major contributor to near-term earnings momentum, with AI infrastructure names expected to account for a substantial portion of S&P 500 earnings-per-share growth in the quarter.
On the company front, Palantir shares rose more than 21% after reporting quarterly revenue above consensus and increasing its full-year revenue forecast. Zebra Technologies rallied more than 18% after delivering stronger-than-expected adjusted earnings and raising its full-year adjusted EPS range. Caterpillar gained more than 10% after posting adjusted EPS well above analyst expectations.
Chip and AI-adjacent stocks also attracted buyers. The Philadelphia Semiconductor Index rose more than 5%, reaching a one-week high, helped by gains in names including Marvel Technology and ARM Holdings, which were up more than 12% and 11%, respectively. Other semiconductor-related stocks—including Sandisk and Intel—also moved higher.
Oil, geopolitics, and the rates backdrop
Energy-related weakness supported a broader risk-on tape early in the session, primarily through oil’s decline. According to the report, WTI crude fell more than 3% to a three-week low after a Qatari spokesman said a proposed US-Iran resolution framework was being circulated, while cautioning that an agreement had not yet been reached. The same update noted prior overnight strength tied to President Trump’s threat of fresh air strikes if the Strait of Hormuz is not opened, and it highlighted ongoing diplomatic efforts involving Oman and Iran alongside continued Iranian claims of authority over the waterway.
As crude prices retreated, it also fed into market pricing of inflation expectations. US 10-year Treasury notes regained footing after an overnight pullback, with the report citing yields falling by about 3.7 basis points to 4.639%. It also noted that safe-haven demand for Treasurys was tempered by equity strength during the session. In Europe, government bond yields were lower, with the German 10-year bund yield down by about 4.7 basis points to 3.105%, and the UK gilt yield slipping to a three-week low near 4.915%.
Central bank expectations continued to shape the fixed-income backdrop. The report said markets were pricing a 59% chance of a 25 basis point rate increase at the next FOMC meeting on September 15–16, and an 85% probability of a 25 basis point increase at the ECB’s September 10 meeting.
Market reaction in stocks
Within equities, the day’s leadership was concentrated in technology and AI-linked names, while energy stocks faced pressure alongside falling crude. The report cited declines in major oil and gas producers including APA Corp and Diamondback Energy, down more than 3%, as well as Chevron and ExxonMobil, down more than 2%, and Devon Energy, down more than 2%. Occidental Petroleum and ConocoPhillips were also lower.
Other individual winners included Ameresco, which rose more than 29% after raising its full-year adjusted EPS forecast to a higher range above the prior guidance. Broad financial services also saw positive movement, with Broadridge Financial Solutions up more than 10% after reporting quarterly revenue ahead of consensus.
Not all earnings reactions were favorable, however. Bruker Corp dropped more than 16% after reporting quarterly revenue below consensus, while Aptiv fell more than 14% after weak results led it to cut its full-year net sales forecast. Additional laggards included Duolingo, down more than 4% after a Bank of America downgrade to underperform, and Nike, down more than 2% after JPMorgan lowered its rating.
What to watch next
Heading into the next trading sessions, investors are likely to focus on the persistence of earnings surprises and guidance across the remaining scheduled reports, as well as any renewed volatility in oil tied to Middle East diplomacy. Additional attention will also be paid to the trajectory of Treasury yields and the market’s evolving odds for forthcoming central bank decisions, alongside incoming macro data—such as the reported US June trade deficit, which was slightly wider than expectations and flagged as a potential headwind for second-quarter growth.
