US and European share indices set fresh records on strong Caterpillar and Palantir results

The main US and European share indices set record highs in trading on Tuesday, 13 Mordad 1405 (4 August 2026). The Dow Jones, the S&P 500 and Europe's STOXX 600 all reached their highest levels, and the MSCI world equity index rose 1.3 percent to 1,145.69 points.

The main driver was the earnings season. According to LSEG data, more than 80 percent of S&P 500 companies beat analyst forecasts this reporting season. Caterpillar, one of the world's largest makers of heavy construction and mining equipment, raised its annual revenue outlook on demand tied to building AI data centres, and its shares rose. Palantir Technologies also lifted its annual revenue forecast, and its shares gained more than 10 percent in after hours trading.

In the bond market, the two year US Treasury yield fell 6.22 basis points to 4.194 percent and the ten year yield fell 5.72 basis points to 4.627 percent. The dollar index slipped 0.13 percent to 99.88. At the same time, oil prices fell sharply on hopes of a diplomatic agreement over the Strait of Hormuz.