Dow soars 1,000 factors, S&P 500 hits file as Bessent alerts Iran deal is close; Palantir rallies 29%
US shares soared Tuesday as Treasury Secretary Scott Bessent signaled a deal with Iran is close to, sending oil costs sliding, and tech futures ripped larger after “otherworldly” Palantir earnings.
The Dow Jones Industrial Average surged 1,041 factors, or 2%, by about 1:20 p.m. ET while the Nasdaq jumped 2.4%.
The S&P 500 rose 1.8% to 7,736.85 — a new file.
Treasury Secretary Scott Bessent on Tuesday signaled a deal with Iran is close to. Jim LoScalzo – Pool through CNP/Shutterstock
“We are in talks with the Iranians,” Bessent told CNBC’s “Squawk Box” Tuesday morning. “There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict.”
He emphasised that any deal would restore “freedom of movement” by the Strait of Hormuz, a important maritime route for 20% of the world’s oil provides – seemingly guaranteeing that Iran is not going to be allowed to charge ships for protected passage.
Brent crude oil costs fell 5.3% to $79.30 a barrel while West Texas Intermediate crude dipped 5.4% to $76.04 – and Bessent predicted costs may plunge even additional as tons of of ships caught in the Persian Gulf start to maneuver.
“It’s not just energy. It’s fertilizer, it’s refined products, it is the various industrial gasses,” Bessent said. “We could see a big relief trade as those prices go down.”
Shares of Palantir rallied an eye-popping 29.3% Tuesday after it reported large earnings on strong demand for AI instruments – main tech shares larger in the session.
CEO Alex Karp called it an “otherworldly” quarter, as the company reported 93% growth in total income to $1.94 billion – including a 149% soar in industrial income to $764 million.
Palantir CEO Alex Karp called it an “otherworldly” quarter. Getty Images
He added that the “sovereign AI revolution makes us very optimistic about the future” and predicted full-year income of more than $8 billion.
Meanwhile, shares of Caterpillar soared 6.5% after the tools big reported better-than-expected earnings and raised its annual income forecast on large demand for development tools amid the race to build large AI data facilities.
The company also said it expects tariff prices to return in at the low end of a beforehand disclosed vary.
Other AI-exposed shares like Marvell Technology, Micron, Nvidia and Microsoft rose. REUTERS
Other AI-exposed shares like Marvell Technology, Micron, Nvidia and Microsoft rose 14.4%, 7.9%, 2.3% and 1.6%, respectively.
It’s the latest in a blowout earnings season, as more than 84% of S&P 500 corporations that have reported earnings have surpassed expectations, according to FactSet.
On Monday, the Dow closed at a file high while Amazon broke past a $3 trillion market cap for the first time.
Investors had been awaiting SpaceX’s first quarterly earnings, scheduled for release Tuesday night – which has merchants in the choices market bracing for a swing of $225 billion in the worth of SpaceX shares.
SpaceX shares rose 6.6% Tuesday.
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