Global Markets Hit Record Highs as Oil Slides on Diplomacy

Global equity markets scaled historic heights, fueled by upbeat forecasts from industrial and tech giants like Caterpillar and Palantir, while hopes for a diplomatic resolution to the Iran conflict sent oil prices spiraling lower, boosting risk appetite.

Industrial and Tech Optimism Drives Record Highs

The rally across US and European exchanges reflects investor confidence in strengthening corporate balance sheets, with the buildout of artificial intelligence (AI) infrastructure acting as a primary catalyst for industrial stocks.

■The Dow Jones Industrial Average rose 907.47 points, or 1.71%, to close at a record 54,085.88.

■The S&P 500 gained 136.02 points, or 1.79%, reaching 7,736.52.

■The tech-heavy Nasdaq Composite surged 2.59% to 26,584.99.

■Caterpillar increased its annual revenue growth forecast, citing benefits from the buildout of AI data centers.

Diplomatic Hopes Ease Oil Prices

Energy markets saw a sharp decline in prices as comments from Qatari and US officials regarding a potential diplomatic resolution to the Iran conflict eased supply concerns. The prospect of normalized transit through the Strait of Hormuz triggered steep drops in both Brent and WTI crude.

■Brent crude futures fell $4.41, or 5.3%, to settle at $79.36 per barrel.

■US West Texas Intermediate (WTI) futures dropped $4.57, or 5.7%, to settle at $75.77 per barrel.

■US Secretary of State Marco Rubio stated progress in talks with Iran and Oman regarding ship movement through the strait, though a final agreement remains pending.

■Treasury Secretary Scott Bessent noted a deal to reopen the strait could arrive as soon as Tuesday or Wednesday.

Space Sector Volatility Post-SpaceX Earnings

SpaceX faced selling pressure after the bell despite reporting its first quarterly results as a public company, which highlighted robust growth in key sectors.

■SpaceX shares were down about 7% in after-hours trading.

■The company reported a 92% rise in revenue, driven by strong growth in its Starlink satellite-internet and AI businesses.

The sharp decline in crude oil prices is a critical development for air freight operators, likely alleviating pressure on jet fuel costs and potentially improving operational margins. Furthermore, the surge in AI infrastructure buildouts suggests a sustained demand for air logistics to transport high-value tech components globally. The upward revision by Caterpillar signals a robust outlook for industrial heavy lift cargo, indicating a broader recovery in global trade flows.