Dow Jones soars over 900 points to close at new record after strong AI showings, possible Iran deal

The Dow Jones Industrial Average and the S&P 500 both closed Tuesday at record highs because of a strong showing from Palantir and Caterpillar that helped reassure investors about AI-driven demand.

The Dow Jones soared over 900 points, which is 1.71%, to close at 54,085. The S&P 500 gained 1.79%, hitting a fresh high for the first time since June and closing at 7,736.52, and the Nasdaq Composite ended with a 2.5% gain to close at 26,584.99.

The record comes after Palantir Technologies soared 26% after it raised its annual revenue forecast again, while Caterpillar gained 5.8% after raising its annual revenue growth forecast, according to Reuters. 

The change also comes after Treasury Secretary Scott Bessent said Tuesday that a deal to reopen the Strait of Hormuz could come within the next two days, prompting a drop in oil prices.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.