NEW YORK, August 4, 2026, 14:20 EDT — U.S. markets open
- The Dow gained about 1,000 points; the S&P 500 traded at a record.
- Brent fell 5% to $79.44, pulling the 10-year yield toward 4.63%.
- Seven S&P sectors fell, but exchange breadth remained firmly positive.
The S&P 500 and Dow hit records Tuesday as oil prices tumbled. Palantir Technologies NASDAQ:PLTR and Caterpillar NYSE:CAT led two distinct AI trades.
Their equity values were almost equal near 2 p.m. ET. Palantir stood at $422.5 billion, against Caterpillar’s $411.8 billion.
Their sales multiples were nowhere close. Palantir traded at 51.8 times its 2026 revenue-guidance midpoint. Caterpillar stood near 5.0 times annualized second-quarter sales.
Valuation comparison near 2 p.m. ET. Multiples are reporter calculations.
| Company | Market value | Sales base used | Market-cap/sales |
|---|---|---|---|
| Palantir | $422.5 billion | $8.154 billion guidance midpoint | 51.8 times |
| Caterpillar | $411.8 billion | $82.0 billion annualized Q2 sales | 5.0 times |
Four times second-quarter sales. This is not Caterpillar guidance.
That tenfold gap captures the rally’s new fault line. Investors paid heavily for software growth, but also rewarded physical AI infrastructure. Cheaper oil supplied the macro tailwind.
By 2 p.m., the Dow had gained 1.9%, or 1,008 points. The S&P rose 1.7%, while the Nasdaq advanced 2.3%. Brent fell below $80.
Cross-asset readings from 12:55 p.m. through 2:03 p.m. ET.
| Market | Move or level | Investor read-through |
|---|---|---|
| Dow industrials | +1.9%, or 1,008 points | Record territory |
| S&P 500 | +1.7% | Record high |
| Nasdaq Composite | +2.3% | Technology-led rally |
| Brent crude | −5.0% to $79.44 | Lower inflation pressure |
| 10-year Treasury | 4.63%, from 4.70% Monday | Lower discount rate |
Palantir’s quarterly revenue jumped 93% to $1.94 billion. U.S. commercial revenue rose 149%. Adjusted free cash flow reached $1.22 billion, with a 63% margin.
Chief Executive Alex Karp called the quarter “otherworldly.” The guidance midpoint rose 6.5%, based on company ranges. Palantir shares gained about 31% near 2 p.m. SEC
Caterpillar’s sales rose 24% to a record $20.5 billion. Adjusted operating margin expanded 4.3 points to 21.9%. Chief Executive Joe Creed cited “strong order rates and a growing backlog.” Caterpillar Investors
Earnings conversion across two AI-linked business models.
| Metric | Palantir | Caterpillar |
|---|---|---|
| Quarterly revenue | $1.94 billion | $20.5 billion |
| Year-on-year sales growth | 93% | 24% |
| Adjusted operating margin | 62% | 21.9% |
| Main demand signal | U.S. commercial revenue +149% | Rising orders and backlog |
| Outlook change | Revenue midpoint raised 6.5% | Annual growth forecast raised |
Reporter calculation from current and previous company guidance.
The combination matters for investors. Palantir shows enterprise software moving beyond pilot projects. Caterpillar shows data-center spending reaching turbines and construction equipment. The AI profit pool is widening.
Chips joined the move. The semiconductor index gained 6.2%, while the Magnificent Seven basket hovered near flat. A Nasdaq-100 ETF proxy beat its S&P peer by 1.39 percentage points.
Leadership and breadth using the latest cited observations.
| Indicator | Reading | Comparison |
|---|---|---|
| Semiconductor index | +6.2% | Led technology |
| Nasdaq-100 ETF proxy | +3.19% | Beat S&P proxy by 1.39 points |
| S&P 500 ETF proxy | +1.79% | Broader-market benchmark |
| S&P sectors declining | 7 of 11 | Narrow sector participation |
| NYSE advancers/decliners | 2.11-to-1 | Positive stock breadth |
| Nasdaq advancers/decliners | 2.57-to-1 | Positive stock breadth |
| S&P earnings beat rate | 85.2% | 17.7 points above long-run rate |
Breadth remained mixed, not weak. Seven of 11 S&P sectors fell. Yet advancers beat decliners by more than two-to-one on both major exchanges.
Of 304 S&P companies reporting by Friday, 85.2% beat estimates. That exceeded the long-run average by 17.7 percentage points. Strategist Eric Parnell said investors must “separate the winners from the losers.” Reuters
Preliminary June JOLTS estimates showed 7.4 million job openings. Hires held at 5.3 million, while layoffs stayed at 1.8 million. The labor picture remained stable, but rate risk persisted.
The next test is durability. Record indexes need oil relief and earnings conversion to persist together. Tuesday supplied both, but leadership stayed narrow by sector.
Risks: No Hormuz agreement had been signed. The strait remained virtually shut, and another ship was reported attacked. A crude rebound could lift yields again. Palantir’s 52-times sales multiple leaves little room for execution misses.
Related articles: NASDAQ:PLTR
