US Market In Blockbuster Rally: DJIA, S&P 500 Hit New Record Highs, Nasdaq Up 2%; SpaceX, AMD Earnings Eyed

The Dow Jones Industrial Average index skyrocketed by 627.85 points or 1.2% to trade around 53,806.26. In the opening bell, the index touched a new all-time high of 53,983.16.

DJIA witnessed stellar demand due to strong quarterly earnings of companies like Palantir Technologies and Caterpillar, which currently zoomed by a whopping 15% and 10%.

Also, decline in fuel and natural gas prices added to the upside momentum, especially after Qatar signaled that peace deal between US and Iran is progressing, which restores faith of limited risks of West Asia on inflation. This in turn pushed treasury yields lower and dampened momentum of US dollar. The ease in US and Iran tensions also worked as a bearish zone for crude oil prices.

S&P 500 At New All-Time High

Apart from macro factors, the quarterly results under S&P 500 ambit have been broadly favorable to better than street expectations. This is enough to bolster S&P 500 that touched a new all-time high of 7,678.27 on Tuesday. Currently, S&P 500 traded at 7,681.31, up by 80.81 points or 1.06%.

"Software firm Palantir led things off late Monday with a solid base hit, rising 7% in post-market action after reporting results that beat consensus and guiding for better-than-expected third-quarter revenues. It also raised its fiscal 2026 revenue estimate above the average Wall Street estimate and adjusted free cash flow guidance upward. It cited growing AI demand," said a Charles Schwab report.

The earnings calendar widens with giants like Caterpillar, McDonald's, and Merck before transitioning this afternoon to Advanced Micro Devices and SpaceX.

Nasdaq Composite Rally Too:

The tech-heavy index, Nasdaq Composite, also surged by 407.50 points or 1.57% to perform at 26,321.40.

During the trading session, Nvidia soared by over 2%, while Microsoft gained 1.7% and SpaceX rallied by over 4% ahead of earnings.

SpaceX, AMD, Caterpillar, McDonald's Earnings

"Earnings from SpaceX come with shares down sharply since the June initial public offering (IPO), in part on worries about more shares soon hitting the market. An insider lock-up expiration this Thursday puts more pressure on the company to soothe worries with earnings and guidance," Schwab's note added.

Further, on Caterpillar and McDonald's earnings, Schwab's note said, the two companies have traveled different directions this year, with the fast-food giant mainly slumping and Caterpillar rallying at least until the last week or two. Obesity drugs and high gas prices hurt the fast food industry, while industrial firms like Caterpillar benefited from the AI build-out. Caterpillar, however, suffered recently amid pushback from communities on data center construction and President Trump's announcement of new tariffs.

While U.S. comparable sales growth is pivotal for McDonald's, Briefing.com said. Schwab cited that investors appear hopeful that value items helped improve market share. U.S. comparable sales growth was 3.9% in the first quarter, year over year.

Additionally, Advanced Micro Devices earnings brings focus back to tech stocks. It will be watched whether Advanced Micros could translate its heavy infrastructure spending into strong income growth. Any setback could lead to selloffs in chipmakers and AI stocks.

Crude Oil Prices + US Dollar + Treasury Yields

Crude oil prices erased their early gains and traded lower by 3% to 4.5%. US WTI Crude Oil futures fell by 4.4% to trade below $77 per barrel, and Brent crude dropped 4% to trade below $80.50 per barrel. Natural gas and gasoline futures have also plunged around 4% each following peace talks of US and Iran.

Oil is now down roughly 10% this week after President Donald Trump delayed planned military action against Iran to allow more time for diplomacy. Trump warned Tehran it had a last chance to reach an agreement on the Strait of Hormuz or face renewed US strikes. However, prospects remain uncertain as Iran continues to insist on controlling maritime traffic through the strategic waterway. Any failure in negotiations could reignite military tensions, threatening energy supplies and driving oil prices higher once again, as per Trading Economics.

The US dollar traded firmer around the 99.92 mark, however, the momentum is volatile as inflationary concerns ease and the probability of rate hike from US Federal Reserve's in September 2026 policy reduces.

Meanwhile, the 10-year benchmark, US Treasury Yield, slipped to 4.645%.