The S&P 500 and the Dow hit record highs on Tuesday after strong forecasts from Caterpillar and Palantir reassured investors about AI-driven demand, while hopes for a deal to end the Middle East conflict sent crude prices lower. Palantir Technologies gained 17.4% after raising its annual revenue forecast again, while chipmaker On Semiconductor added around 1% after forecasting quarterly revenue above expectations. Caterpillar gained 12% after raising its annual revenue growth forecast, benefiting from a buildout of AI data centers. At 9:35 a.m. ET, the Dow Jones Industrial Average rose 647.09 points, or 1.22%, to 53,825.50. The Nasdaq Composite gained 304.36 points, or 1.16%, to 26,213.57. The S&P 500 gained 44.06 points, or 0.58%, to 7,644.56, hitting its first record high since June. The Philadelphia Semiconductor index was up around 4%. Energy led losses with a 2.5% decline. Of the 304 companies in the S&P 500 that have reported second-quarter earnings as of Friday, 85.2% have beaten estimates, versus the long-term average of 67.5%. Crude prices fell over 2% after a Qatari official said efforts to secure a diplomatic resolution were continuing, while U.S. Treasury Secretary Scott Bessent said a deal