Key facts
- The S&P 500 and Dow Jones Industrial Average reached intraday record highs.
- AI-linked earnings and optimism over a potential deal to reopen the Strait of Hormuz boosted stocks.
- Treasury Secretary Scott Bessent indicated a deal to reopen the Strait of Hormuz could be imminent.
- Oil prices, including Brent crude and WTI, fell significantly during the week.
- Major tech stocks, particularly AI and chip-related companies, saw substantial gains.
- Palantir shares surged 27% on strong commercial revenue, while Caterpillar beat earnings estimates.
US stocks surged to record highs, with the S&P 500 and Dow Jones Industrial Average breaking through previous milestones. The rally was fueled by strong earnings from AI-related companies and optimism surrounding potential de-escalation of tensions in the Middle East. Treasury Secretary Scott Bessent stated that a deal to reopen the Strait of Hormuz could be reached soon, contributing to a significant drop in oil prices. The technology sector saw a strong rebound, with Palantir shares surging 27% and Caterpillar rising 6% after beating earnings expectations. Analysts suggest the AI trade may be undergoing a rebalancing, with compressed valuations and growing revenue translating into tangible growth.