Stock indexes hit record highs

MSCI’s gauge of stocks across the globe rose 14.68 points, or 1.30%, to 1,145.69

Stock indexes hit record highs on Tuesday following upbeat forecasts from Caterpillar and other companies, and ​oil prices extended recent sharp declines.

The Dow, S&P 500 and pan-European STOXX 600 all reached records.

The yen weakened, but held ‌on to most of its intervention-driven gains after last week’s joint action by Tokyo and Washington to support the currency.

Weighing on oil were comments by Qatari and U.S. officials that raised hopes for a diplomatic resolution to the Iran war that could improve oil flows through the Strait of Hormuz.

Brent crude futures dropped $4.41, or 5.3%, to settle at $79.36 a barrel, the lowest since July 13.

Shares of Caterpillar advanced after the ​company increased its annual revenue growth forecast as it benefited from a buildout of AI data centres, while shares of Palantir Technologies soared as the company also raised its annual revenue forecast.

Investors are reacting to stronger earnings and stronger expectations, said Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut. There’s a general sense of ​optimism out there and that’s being reflected.

More than 80% of S&P 500 companies are beating analysts’ earnings expectations for the last quarter, according to LSEG ​data.

The Dow Jones Industrial Average gained 907.47 points, or 1.71%, to 54,085.88, and the S&P 500 added 136.02 points, or 1.79%, to 7,736.52, each setting all-time closing highs. The Nasdaq ⁠Composite advanced 671.10 points, or 2.59%, to 26,584.99.

MSCI’s gauge of stocks across the globe rose 14.68 points, or 1.30%, to 1,145.69. It hit an intraday record high and was set to close at a record.

The pan-European STOXX 600 index advanced ​0.73% to 656.86, a record high close. ​It was lifted by gains in ⁠technology stocks and a slate of corporate earnings updates.