Traders work on the floor of the New York Stock Exchange (NYSE) on May 6, 2026 in New York City. <\/p>\n
Spencer Platt | Getty Images<\/p>\n
Stocks rose on Tuesday, fueled by strong quarterly results from companies such as Palantir Technologies<\/a> and Caterpillar<\/a>, as oil prices dropped amid optimism that a U.S.-Iran deal to reopen the Strait of Hormuz could be on the horizon<\/a>.<\/p>\n The S&P 500<\/a> gained 0.8% and had hit a fresh all-time intraday high, while the Nasdaq Composite<\/a> popped 1.4%, as Palantir rallied more than 21%. The Dow Jones Industrial Average<\/a> climbed 616 points, or 1.2%, led by a 6% rise in Caterpillar. The 30-stock index also notched a new record high.<\/p>\n Treasury Secretary Scott Bessent said in an interview on CNBC’s “Squawk Box<\/a>” that “we are in talks with the Iranians.” He then added, “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.”<\/p>\n Oil prices moved lower following Bessent’s comments, with West Texas Intermediate<\/a> futures dropping 5% to around $76 per barrel. Brent crude<\/a>, the international benchmark, declined 4% to roughly $80 a barrel.<\/p>\n The major stock averages surged in Monday’s session, with the Dow closing at a record high<\/a>, as Amazon<\/a> eclipsed $3 trillion in market cap for the first time. Nvidia<\/a> shares also ripped higher along with Meta Platforms<\/a>. Google parent Alphabet<\/a> and Microsoft<\/a> also popped during the day.<\/p>\n Palantir posted blowout results for the second quarter<\/a>, which CEO Alex Karp described as “otherworldly” as a result of artificial intelligence sovereignty demand. Notably, the company’s commercial revenue jumped 149% to $764 million. Karp also said that the “sovereign AI revolution makes us very optimistic about the future.”<\/p>\n Caterpillar similarly reported better-than-expected Q2 numbers<\/a> as well as upped its revenue growth guidance, with the industrial giant noting strong demand for its equipment. The company also said its tariff costs outlook for the full year should come in at the lower end of its previously expected range.<\/p>\n Other tech names followed Palantir higher. Micron Technology<\/a> gained 5%, while Marvell Technology<\/a> advanced 10%.<\/p>\n “Animal spirits are buoyant to begin the month,” said Jose Torres, senior economist at Interactive Brokers. He noted that the latest manufacturing<\/a> and services sector data released Monday and “recent earnings calls boost confidence that capital return prospects could impress amid valuations that have become substantially cheaper during the deep tech selloff.”<\/p>\n