Finance

Strong quarterly earnings performance from key enterprise and industrial companies boosted investor confidence in the sustainability of AI investments. Palantir Technologies saw its shares skyrocket nearly 30% after lifting its full-year guidance, while heavy-equipment manufacturer Caterpillar rose over 5% due to robust demand for its power-generation infrastructure.

International oil benchmarks retreated significantly following reports of diplomatic progress and potential negotiations to reopen the vital Strait of Hormuz. West Texas Intermediate and Brent crude futures both dropped over 5%, helping to lower U.S. Treasury yields and alleviate macroeconomic pressures on the broader market.

Operating under the spotlight of public markets for the first time, Elon Musk's space exploration company reported a second-quarter revenue of $7.8 billion, beating analyst projections. Despite narrowing its net loss and significantly expanding its adjusted core earnings through its Starlink and launch businesses, the company's shares fell roughly 4% in extended trading.