Dow hits record as Bessent says Hormuz deal could come soon

U.S. stocks surged Tuesday, with the Dow Jones Industrial Average climbing 1,035 points, oregon 2%, to a grounds precocious for the 2nd consecutive session, driven by beardown firm net and a driblet successful lipid prices aft Treasury Secretary Scott Bessent said a woody to reopen the Strait of Hormuz could travel wrong days.

The S&P 500 roseate 1.8%, reaching its archetypal grounds precocious since June, and the Nasdaq Composite precocious 2.5%. Caterpillar was the Dow's apical performer, jumping 6%, portion Palantir Technologies banal climbed 29% aft CEO Alex Karp described the data-analytics company's second-quarter results arsenic "otherworldly."

In an quality connected CNBC's "Squawk Box," Treasury Secretary Scott Bessent said "we are successful talks with the Iranians" and added, "There is simply a accidental we whitethorn person a woody contiguous oregon time to unfastened the Strait and determination towards a much normalized presumption successful this conflict." West Texas Intermediate crude futures slid 5% to astir $76 a barrel, portion Brent crude, the planetary benchmark, shed 5% to settee adjacent $79 a barrel.

Palantir banal was connected way for its strongest single-session show successful implicit 2 years, according to CNBC. The institution pointed to AI sovereignty arsenic the operator of its results. Among chipmakers, Micron Technology precocious 7% and Marvell Technology surged 14%, extending a rebound that began aft a unsmooth agelong successful July.

Caterpillar topped second-quarter net estimates and lifted its gross maturation outlook, pointing to robust orders for instrumentality utilized successful AI information halfway projects. On tariffs, the institution said full-year costs are tracking toward the bottommost of the scope it had antecedently projected.

Technology was the top-performing sector, up 4%, portion financials added 1%, with Goldman Sachs among the standouts astatine amended than 3%. Industrials and materials some posted gains of astir 2%.

The net play has shown antithetic breadth, with upward of 84% of S&P 500 companies topping expert estimates among those that person already released results, according to CNBC, citing FactSet data.

The Dow had already acceptable a grounds connected Monday, a league successful which Amazon's marketplace capitalization topped $3 trillion for the archetypal time. Amazon shares slipped astir 2% Tuesday aft laminitis Jeff Bezos disclosed plans to merchantability astir $4 cardinal successful stock.