Major stock indexes hit record highs on Tuesday following upbeat forecasts from Caterpillar and other companies, and oil prices extended recent sharp declines.
The Dow, S&P 500 and pan-European STOXX 600 all reached records.
Shares of Caterpillar, often seen as a bellwether for the global industrial economy, rose after the company increased its annual revenue growth forecast as it benefited from a buildout of AI data centers, while shares of Palantir Technologies surged as the company also raised its annual revenue forecast.
Investors are reacting to "stronger earnings and stronger expectations," said Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut. "There's a general sense of optimism out there and that's being reflected."
More than 80% of S&P 500 companies are beating analysts' earnings expectations for the last quarter, according to LSEG data.
The Dow Jones Industrial Average rose 907.47 points, or 1.71%, to 54,085.88, and the S&P 500 gained 136.02 points, or 1.79%, to 7,736.52, each setting all-time closing highs. The Nasdaq Composite rose 671.10 points, or 2.59%, to 26,584.99.
After the closing bell, shares of SpaceX were about 7% lower. The company posted its first quarterly results as a public company, highlighting a 92% rise in revenue on strong growth in its Starlink satellite-internet and AI businesses.
MSCI's gauge of stocks across the globe rose 14.68 points, or 1.30%, to 1,145.69. It hit an intraday record high and was set to close at a record.
The pan-European STOXX 600 index rose 0.73% to 656.86, a record high close. It was lifted by gains in technology stocks and a slate of corporate earnings updates.
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