Sp500 surges as Dow leaps 800 points on Hormuz hopes
The sp500 jumped toward record highs Tuesday as the Dow leapt roughly 800 points on easing oil and strong earnings. Blowout results from Palantir and hopes of a Strait of Hormuz reopening powered the rally, with SpaceX’s first public report due after the close. Diplomacy claims remain contested.
Key Takeaways
- The sp500 and Dow surged as oil fell on optimism that talks could reopen the Strait of Hormuz.
- Palantir shares soared after an “otherworldly” quarter, with revenue up about 93% and a raised 2026 outlook.
- U.S. officials say Hormuz progress is close; Iran denies direct negotiations with Washington.
- Investors are watching SpaceX’s first earnings report as a public company after the closing bell.
Wall Street’s risk appetite returned in force. Strong corporate profits and cooler crude prices outweighed lingering worries about inflation and Middle East conflict, according to live market coverage from the Wall Street Journal.
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Why did the sp500 and Dow jump so hard today?
Two forces hit at once. First, oil prices slid as investors priced in a possible reopening of the Strait of Hormuz, a chokepoint that normally carries a large share of global oil and LNG shipments. Lower energy costs ease inflation fears and support equities.
Second, earnings kept beating expectations. Palantir led the charge after CEO Alex Karp described a spring quarter as “otherworldly,” with overall revenue leaping about 93%. Shares jumped roughly 30% in Tuesday trading, lifting the tech-heavy tape that feeds the sp500.
Heavy-equipment maker Caterpillar also gained after stronger profit and revenue, underscoring demand tied in part to AI data-center buildouts. Chip names strengthened as well, extending a rebound from July’s washout.
How close is a Strait of Hormuz deal—and does Iran agree?
U.S. officials struck an upbeat tone. Treasury Secretary Scott Bessent said Washington is in talks and that a deal to open the strait could come Tuesday or Wednesday, with freedom of movement for commercial ships. Secretary of State Marco Rubio said progress has been made but finality has not.
That optimism is contested. The Trump administration claims a Hormuz arrangement is close, while Iran denies direct negotiations with the United States, saying contacts center on Oman and a temporary safe shipping route—not a full U.S.-Iran settlement, The Washington Post reported. The New York Times separately said officials report progress on talks to reopen the waterway.
Markets are trading the hope of freer tanker traffic. The strait itself has remained constrained, and any setback could quickly reverse oil’s slide—and the sp500’s bounce.
What should investors watch in Palantir and SpaceX earnings?
Palantir’s print raised the bar for AI software: commercial revenue surged, government demand stayed firm, and full-year guidance moved higher. The move cut into earlier 2026 share losses and reminded traders that AI demand can show up in current revenue, not only future promises.
SpaceX is next. The company is due to report results as a public company for the first time after the close, giving Wall Street its first full look at post-IPO financials amid lofty expectations for launch cadence and longer-term space infrastructure bets.
Bottom line: Tuesday’s rally tied the sp500’s path to diplomacy headlines and a handful of outsized earnings. If Hormuz talks stall—or if SpaceX disappoints—volatility can return as fast as today’s leap.