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All three major US stock indexes climbed, although the gains of the tech-heavy Nasdaq were tempered by weaker performance among megacap growth stocks, particularly Nvidia Corp and Microsoft Corp read more
 "Record closing high for Dow Jones, widespread rally on Wall Street")
Wall Street stocks rose and the Dow Jones hit a record closing high on Tuesday (July 16). AP
Wall Street stocks surged on Tuesday, with the Dow Jones Industrial Average reaching an all-time closing high, bolstered by US retail sales data that suggested the Federal Reserve might soon end its easing cycle. This data supported the notion that inflation is being tamed without precipitating a recession.
All three major US stock indexes climbed, although the gains of the tech-heavy Nasdaq were tempered by weaker performance among megacap growth stocks, particularly Nvidia Corp and Microsoft Corp.
The Dow Jones Industrial Average soared by 1.9 per cent, or more than 740 points, concluding the day at 40,954.48, marking its second consecutive record close.
The S&P 500, representing a broad range of the market, rose by 0.6 per cent to reach 5,667.20, also a record high. The Nasdaq Composite Index, with its significant tech sector exposure, edged up by 0.2 per cent to 18,509.34.
Unlike previous record-setting sessions driven by a few dominant Big Tech stocks, Tuesday’s rally was more broad-based, with nearly 90 per cent of the stocks in the S&P 500 advancing.
Market movers
UnitedHealth Group led the market, posting better-than-expected profits for the spring despite substantial losses from a major cyberattack. Its shares surged by 6.5 per cent.
Bank of America saw a 5.3 per cent rise in its stock after reporting stronger-than-forecast profits for the latest quarter, benefiting from growth in its investment banking division.
Nvidia was the heaviest drag on the S&P 500, with its shares falling by 1.6 per cent. Given the company’s substantial market capitalisation, its movements significantly impact the index.
Charles Schwab’s shares plummeted by 10.2 per cent following a reported decline in interest income.
Match Group, the parent company of Tinder, jumped by 7.5 per cent on news that activist investor Starboard Value has acquired a stake exceeding 6.5 per cent in the company.
Bond market dynamics
The yield on the 10-year Treasury declined to 4.16 per cent from 4.23 per cent late Monday. This marks a significant drop from April’s 4.70 per cent, providing a considerable boost to stock prices.
Yields have decreased amid rising expectations that inflation is slowing sufficiently to prompt the Federal Reserve to begin cutting interest rates soon.
On Tuesday, Federal Reserve Governor Adriana Kugler indicated that the central bank might consider lowering interest rates sooner rather than later if the job market cools excessively.
The Fed has maintained its main interest rate at its highest level in over two decades, aiming to slow the economy just enough to fully control inflation.
With inputs from agencies
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English (US) ·