Palantir Soars 29% on NYSE: Where Did the Real Momentum Come From?

On the 4th (local time), the New York stock market once again hit record highs. The S&P 500 rose 1.8% to 7,736.52, the Dow advanced 1.7% to 54,085.88, and the Nasdaq jumped 2.6% to close at 26,584.99. With second-quarter earnings being revised upward across the board and oil prices plummeting, concerns over inflation, war, and an AI bubble that had weighed on the market were briefly pushed aside.

At the heart of the rally were better-than-expected results from AI-beneficiary stocks. Palantir’s shares surged 29.5% after delivering “surprise” revenue growth of 93% year-over-year and raising its full-year sales outlook. Caterpillar also climbed 5.6% as both its quarterly revenue and profit topped market expectations with record revenue, driven in part by increased demand for data-center turbines amid expanded AI investments. The S&P 500’s constituent companies are expected to report second-quarter earnings per share about 50% higher than a year ago, making earnings growth itself the primary justification for the stock rally.

Global factors were also supportive. Brent crude fell more than 5% to $79.36 a barrel, and the 10-year U.S. Treasury yield slid from 4.75% to 4.62%, easing inflation concerns. In June’s Job Openings and Labor Turnover Survey (JOLTS), job openings dipped slightly to around 7.4 million, suggesting the labor market remains strong even as overheating cools. With the Federal Reserve holding its benchmark rate at 3.5–3.75% and signaling a reduction in forward guidance, the market has lowered expectations for another large rate hike, while remaining mindful that geopolitical and trade risks—such as escalation in the Iran conflict and lawsuits over new Trump-era tariffs—could rekindle volatility.