S&P 500 hits record high on strong AI-linked earnings, Middle East deal hopes 

[BENGALURU] Wall Street’s benchmark S&P 500 hit an intraday record high for the first time since early June on Tuesday (Aug 4), boosted by upbeat artificial intelligence-driven forecasts from Caterpillar and Palantir and hopes for an imminent deal to end tensions in the Middle East.

Recent gains on Wall Street have been driven by strong earnings from AI heavyweights such as Amazon and Microsoft that reassured investors that their billion-dollar investments were yielding returns.

The blue-chip Dow was also trading at a fresh intraday record high.

The S&P 500 had retreated from all-time highs as tensions between Iran and the US resurfaced in early June, and concerns about elevated valuations following a strong second-quarter rally weighed on AI-related stocks through July.

The Dow Jones Industrial Average rose 462.8 points, or 0.87 per cent, at the open to 53,641.21.

The S&P 500 rose 30.1 points, or 0.4 per cent, at the open to 7,630.62​, while the Nasdaq Composite rose 174.1 points, or 0.67 per cent, to 26,088.042 at the opening bell. REUTERS