Dow Tops 54,000, S&P 500 Hits a Fresh Record as Palantir Soars 30% on an "Otherworldly" Quarter

Record Highs, Round Two — Earnings Beats Power a Second Straight Rally

Palantir's "Otherworldly" Quarter Headlines a Record-Setting Session

• Palantir (PLTR) surged ▲ 29.5% after CEO Alex Karp called the quarter "otherworldly," with U.S. commercial revenue jumping roughly 90% year-over-year and the company raising its full-year outlook.
• The rally lifted the S&P 500 to a fresh closing record of 7,736.52, up ▲ 1.80%, and pushed the Dow above 54,000 for the first time, closing at 54,085.88, up ▲ 1.70%.
• Caterpillar added to the record-earnings narrative, topping $20 billion in quarterly sales and revenue for the first time in company history on booming AI-infrastructure-driven demand.
• The Nasdaq Composite led major indexes higher, up ▲ 2.60% to 26,584.99, as semiconductor names joined the broad-based advance.

Chips Ride a Risk-On Wave as Oil Slides on Hormuz Optimism

• The PHLX Semiconductor Index jumped roughly 7% as Intel surged ▲ 10% and Advanced Micro Devices gained ▲ 8% during the regular session, extending a rebound from late-July lows.
• Nvidia and Micron also advanced, while optical-networking names Lumentum, Coherent, and Applied Optoelectronics surged on reports tied to transceiver demand.
• Oil prices tumbled after Treasury Secretary Scott Bessent flagged a possible near-term deal to reopen the Strait of Hormuz; WTI crude fell roughly $4.57 to about $75.77 a barrel.
• The 10-year Treasury yield eased about 6 basis points to 4.625% as falling energy prices tempered inflation concerns.

Earnings Beats Drove the Day's Biggest Gainers

• Palantir (PLTR) led all S&P 500 gainers, up ▲ 29.5%, after blowout Q2 results and raised guidance.
• Zebra Technologies (ZBRA) jumped ▲ 26.5% and Gartner (IT) surged ▲ 22.6%, both on strong earnings beats.
• Intel (INTC) climbed ▲ 10% and AMD rose ▲ 8% in the regular session as chip stocks extended their rebound — though AMD's own earnings, released after the close, later pressured shares in after-hours trading.
• Caterpillar (CAT) also advanced after posting its first-ever $20 billion quarterly sales figure, powered by AI-infrastructure demand.

A Second Straight Record-Setting Session

• The Dow Jones Industrial Average closed above 54,000 for the first time, gaining ▲ 1.70% to 54,085.88, while the S&P 500 notched a fresh record close of 7,736.52, up ▲ 1.80%.
• Tuesday's gains build on a strong final week of July, when the S&P 500 rose about 1.0%, the Nasdaq gained roughly 1.4%, and the Dow added about 1.1%.
• The Russell 2000 climbed ▲ 1.85% to 3,036.98 as small-cap names joined the broad rally, while gold advanced to roughly $4,152.60 an ounce.
• S&P 500 companies are tracking toward earnings-per-share growth of nearly 50% year-over-year this quarter — the strongest pace since the 2021 pandemic recovery — with an 87% beat rate among reporters so far.

What to Watch the Rest of the Week of August 3

• Disney, Eli Lilly, Uber, and Shopify report earnings before Wednesday's open, August 5, with SanDisk, Western Digital, and AppLovin reporting after the close.
• Wednesday also brings ADP's July private-payrolls report and the ISM Services PMI, early reads ahead of Friday's official jobs report.
• AMD shares fell nearly 9% in after-hours trading Tuesday despite beating estimates, as investors wanted a stronger AI-chip forecast — worth watching when chip stocks open Wednesday.
• Progress on reopening the Strait of Hormuz remains the key swing factor for oil prices and market sentiment into Wednesday and Thursday.
• SpaceX posted its first earnings report as a newly public company, with record revenue of $7.8 billion; the stock was little changed after hours.