S&P 500 and Dow Hit Record Highs as Palantir Surges 21% on Strong AI Earnings

Wall Street extended its winning streak to a fourth consecutive day, with the Dow Jones Industrial Average rising 1.5% and the S&P 500 climbing 0.5%, both reaching all-time highs during trading. The Nasdaq also gained 1%, marking another positive day though still slightly below its early June peak. The market optimism is driven by robust earnings reports from the artificial intelligence sector and positive developments in U.S.-Iran relations.

U.S. Treasury Secretary Janet Yellen encouraged investors by revealing ongoing talks with Iran that could soon lead to an agreement reopening the Strait of Hormuz for commercial shipping, which caused Brent crude oil prices to fall 2.2% to $81.9 per barrel. In corporate news, Palantir Technologies stole the spotlight with a remarkable 21% jump after reporting a 93% revenue increase to $1.94 billion in Q2, surpassing analyst expectations. CEO Alex Karp described the results as "from another world," highlighting a 149% revenue growth from U.S. commercial clients. Palantir also sharply raised its full-year revenue forecast to approximately $8.16 billion.

Strong earnings from tech giants like Amazon and Microsoft helped ease investor concerns about heavy AI infrastructure investments, positively impacting the entire technology sector. Other notable market moves included McDonald's rising 1.7% after beating Q2 earnings estimates and appointing Sky Anderson as U.S. president. Israeli company Wix gained 4.6% despite reporting a deeper net loss due to acquisition costs and layoffs. Tower Semiconductor fell 9.5% as investors took profits despite the company beating forecasts and issuing a positive outlook. Snapchat surged over 7% following higher active user numbers and revenue exceeding expectations.