Palantir Soars 27% and Caterpillar Helps Lift the Dow 800 Points

Palantir Technologies surged 27% Tuesday on accelerated adoption of its AI platform by commercial customers, helping fuel a broad market rally. Caterpillar jumped 6% after posting 17% revenue growth in Q2, beating estimates and adding 800 points to the Dow.

The iShares Semiconductor ETF climbed 6.3% as chip stocks rebounded from July's selloff. The Nasdaq led major indexes with a 1.9% gain, followed by the S&P 500 up 1.3% and the Dow up 1.5%. Twenty-two of 30 Dow components posted gains.

Palantir's move came as enterprise clients ramped up spending on its AI platforms faster than analysts anticipated. The stock's single-day gain represents one of its largest one-day moves since going public. Caterpillar's beat extended its streak of outperformance as construction and mining equipment demand remained resilient despite recession fears.

The broad rally marked a shift back into growth and cyclical names after weeks of defensive rotation.