Wall Street hits record highs as Trump hails US market gains

US stock indexes closed at fresh record highs on Tuesday, buoyed by strong corporate earnings and falling oil prices amid growing optimism over progress in talks to reopen the Strait of Hormuz.

US President Donald Trump said the stock market is hitting unprecedented record levels because investors recognize that "America is winning."

The Dow Jones Industrial Average jumped 907.47 points, or 1.71%, to a record 54,085.88. The S&P 500 rose 1.79% to 7,736.52, closing above 7,700 for the first time ever and marking its highest level on record. The Nasdaq Composite climbed 2.59% to 26,584.99.

Technology stocks led the rally, with Palantir Technologies surging 29% after posting strong quarterly results. Micron Technology gained over 7%, and Marvell Technology rose about 13%.

Caterpillar led the Dow's gains, rising more than 5% after the company reported better-than-expected quarterly results and raised its annual revenue growth forecast, benefiting from increased demand for its equipment used in building artificial intelligence data centers in the US.

Among sectors, technology jumped nearly 4%, while materials and industrials each rose about 2%. The financial sector climbed 0.9%, led by Goldman Sachs, which gained more than 2%.

Markets also received a boost from lower oil prices, following comments from US Treasury Secretary Scott Besant about ongoing talks with Iran and the possibility of reaching an agreement to reopen the Strait of Hormuz as early as Tuesday or Wednesday.

West Texas Intermediate crude futures fell 5.69% to settle at $75.77 a barrel, while Brent crude dropped 5.26% to $79.36 a barrel.