The S&P 500 surged to new highs overnight, closing above 7700 for the first time. Oil prices moved lower after Treasury Secretary Scott Bessent said in an interview on CNBC 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 normalised position in this conflict.” A +29% surge in Palantir (PLTR US) further buoyed sentiment after it delivered another blowout result, with CEO Alex Karp describing demand for AI sovereignty as “otherworldly.” Palantir enjoyed its best session in more than two years, while the semiconductor rally gathered pace, with Micron surging more than +7% and Marvell jumping nearly +13%.
Caterpillar was the Dow’s best performer after beating second-quarter expectations and raising its revenue growth outlook, citing robust demand from the accelerating AI data centre build-out. The broader earnings backdrop also remains exceptionally strong, with more than 84% of S&P 500 companies reporting results so far exceeding analysts’ expectations.
- We can see the S&P 500 initially testing 8000 before Christmas, but surprises are likely to remain on the upside.
