The S&P 500 rose 1.8% to close above its previous record set in June, as corporate earnings continued to exceed expectations and oil prices fell. The Dow Jones Industrial Average gained 1.7%, also setting a fresh high, and the Nasdaq composite jumped 2.6%, according to the Sydney Morning Herald.

The rally was led by Palantir Technologies, which surged nearly 30% after what chief executive Alex Karp called an “otherworldly” quarter. The company posted quarterly revenue of $1.9 billion, up 93% year-on-year, and sharply raised its full-year 2026 revenue forecast to between $8.15 billion and $8.16 billion. Caterpillar climbed 5.5% after reporting its first quarter with sales above $20 billion, citing strong order rates and increased demand for turbines used to power AI data centres.

Falling oil prices added to the positive sentiment. Brent crude fell 5.4% to $79.25 a barrel, easing inflation concerns that had weighed on markets. The drop followed a period of high volatility driven by uncertainty over the war in Iran and its impact on tanker movements in the Persian Gulf, as reported by the Sydney Morning Herald.

Looking ahead, attention will turn to economic data releases this week. Economists expect the Labour Department's Job Openings and Labour Turnover Survey to show about 7.4 million job openings in June, slightly down from the previous month. Traders are also watching for signals from the Federal Reserve on interest rates, with the CME FedWatch Tool indicating a 63.4% probability of a rate hike at the next meeting.