US stocks surged on Tuesday as strong corporate earnings pushed technology shares higher, sending the S&P 500 to a fresh record close while investors assessed SpaceX’s first quarterly results since becoming a publicly traded company.
The S&P 500 advanced 1.8% to reach an all-time high, while the Nasdaq Composite led gains with a 2.6% jump. The Dow Jones Industrial Average also extended its record run, rising 1.8% and adding around 900 points.
Tech Shares Lead Broad Market Rally
A strong earnings session helped drive the move higher, with chip stocks benefiting from renewed demand. The PHLX Semiconductor Index climbed 6%, with Intel, Micron and Nvidia among the companies gaining momentum.
Palantir was one of the biggest movers, jumping nearly 30% after reporting a stronger-than-expected second quarter. The company’s US government commercial revenue increased 90% year on year, with chief executive Alex Karp describing the period as an “otherworldly” quarter.
Caterpillar also supported the Dow after reporting sales and revenue above $20 billion for the first time. The industrial company has benefited from investment linked to artificial intelligence infrastructure, helping lift sentiment across the wider market.
Investors were also watching results from Advanced Micro Devices, McDonald’s and Spotify, while SpaceX became the focus as it released its first earnings report since listing.
SpaceX Beats Forecasts Despite AI Spending Concerns
SpaceX reported second-quarter revenue of $7.8 billion, above analyst consensus estimate of $6.81 billion and up from $4.7 billion in the first quarter. Adjusted EBITDA came in at $3.5 billion, ahead of expectations of $2 billion.
The company said revenue growth accelerated across all business segments, with chief financial officer Bret Johnsen highlighting margin expansion linked to new AI compute agreements.
Capital expenditure reached $18.37 billion during the quarter, slightly below forecasts of $18.58 billion, although investors remain focused on the scale of SpaceX’s AI investment. The company’s AI segment recorded an operating loss of $1.26 billion, while AI spending increased to $15.8 billion from $7.7 billion in the previous quarter.
SpaceX also announced a partnership with Nvidia to develop its Starmind AI-1 payload, using Nvidia Rubin GPUs and Vera CPUs to bring data centre-level computing capacity into orbit.
Despite the positive earnings report, investors are watching the upcoming lockup expiry on 6 August, which could release up to 20% of shares for sale and increase available supply.
Oil Falls as Markets Watch Strait of Hormuz Talks
Crude prices continued to decline after Treasury Secretary Scott Bessent said there was a possibility of a deal to reopen the Strait of Hormuz. The comments followed mixed signals over US-Iran discussions after President Donald Trump paused plans for a large-scale attack while negotiations were considered.
Markets are also preparing for key labour data, with the latest Job Openings and Labor Turnover Survey providing the first major employment update ahead of Friday’s July jobs report.
FTSE 100 Edges Higher as Miners Gain
London stocks delivered smaller gains, with the FTSE 100 rising 0.2% while the FTSE 250 climbed 1% after strong updates from mid-cap companies.
Mining stocks provided the biggest support on the FTSE 100, with Antofagasta rising 6.9%, Anglo American gaining 5.5% and Endeavour Mining adding 3.4% as metals prices strengthened.
BP reported second-quarter underlying replacement profit before interest and tax of $10.31 billion, ahead of expectations, but shares fell 4.9% as oil prices declined. Shell also dropped 2.5%.
Smith & Nephew was the weakest FTSE 100 performer, falling 6.3% after lowering its full-year sales growth forecast to 4% from around 6%.
On the FTSE 250, Travis Perkins jumped 18% after reporting interim adjusted operating profit of £67 million, while AG Barr fell 5.4% following supply chain disruption and CLS Holdings declined 8% after warning earnings would fall below forecasts.
