Stocks Are Rising On Hopes Of Iran Deal And Strong Corporate Results. The S&P 500 Is Heading For a Record High

The S&P is heading for a record high on Tuesday on hopes of a deal to reopen the Strait of Hormuz and renewed appetite for tech stocks.

All main indexes are climbing, buoyed by strong results from Palantir and Caterpillar. The former delivered another blockbuster quarter on Monday, easily surpassing Wall Street expectations as demand for its artificial intelligence software continued to accelerate across both government and commercial customers.

The Denver-based software firm reported adjusted earnings of 41 cents per share for the second quarter, beating analysts' expectations of 35 cents, while revenue climbed to $1.94 billion, well ahead of the $1.80 billion forecast compiled by LSEG.

Revenue nearly doubled from the same period last year, surging 93% from approximately $1 billion. Net income also posted a dramatic increase, reaching $1.07 billion, or 41 cents per share, compared with roughly $329 million, or 13 cents per share, during the second quarter of 2025.

In contrast, Amazon shares are declining after founder Jeff Bezos filed to sell more than $4 billion worth of strock from the company. The move came after the company filed stronger-than-expected results that sent the stocks soaring and above a $3 trillion valuation for the first time.

Amazon reported adjusted earnings of $1.97 per share for the second quarter, comfortably beating analysts' expectations of $1.82 per share. Revenue reached $200.61 billion, also topping Wall Street forecasts of $196.47 billion.

While Amazon's retail business remains its largest operation by revenue, it was the continued strength of Amazon Web Services (AWS) that captured investors' attention. AWS generated $42.2 billion in revenue during the quarter, significantly ahead of analysts' expectations of $40.54 billion. The results reflected accelerating demand from businesses investing heavily in AI applications, data processing and cloud infrastructure.

Cloud computing has become one of the most important battlegrounds in the technology industry as companies race to develop and deploy increasingly sophisticated AI models that require enormous computing power.

In the geopolitical arena, oil is declining on after U.S. Treasury Secretary Scott Bessent expressed optimism about the possibility of reaching a deal that will see the reopening of the Hormuz Strait in the next hours.

"We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict," Bessent said in an interview with CNBC.

Asked whether Iran will be allowed to charge a toll for passage, as it has said it is willing to do, he was not specific but said the agreement would allow freedom of navigation in the waterway. "Even though things are still a little dicey there over the past few days, we saw quite a few ships coming out even now."

Reuters detailed on Tuesday that Tehran is seeking to control inbound shipping through the Hormuz Strait and have oversight over outbound traffic.