Big Tech drives stock market to record highs amid AI enthusiasm

The S&P 500 closed at roughly 7,736.52 in early August 2026, notching a new all-time high on a gain of about 1.8%. The Dow Jones Industrial Average crossed 54,000 for the first time. And the catalyst was the same force that has been pushing markets higher since 2023: artificial intelligence. Big Tech earnings season landed like a highlight reel. Palantir, Microsoft, Amazon, and Alphabet all reported quarterly results that pointed to the same conclusion: companies are still spending heavily on AI, and the vendors collecting those checks are thriving. Palantir’s jaw-dropping quarter Of all the earnings reports fueling this rally, Palantir Technologies delivered the most dramatic numbers. The data analytics firm posted 93% year-over-year revenue growth, a figure so strong that CEO Alex Karp described the company’s performance as “otherworldly.” Palantir’s stock surged 29.5% on the results. The company also raised its full-year 2026 revenue forecast, signaling that management expects demand for its AI-powered platform to keep accelerating rather than plateau. The usual suspects delivered too Palantir grabbed the spotlight, but the broader rally depended on a familiar cast. Microsof...