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Tags: Dow Jones, Nasdaq, S&P 500, US retail sales
Major US stock indices climbed on Tuesday, with the Dow Jones leading gains. The Dow surged 742.76 points (1.85%), marking its second consecutive record close and the strongest performance since June 2023. The S&P 500 rose 0.64%, while the Nasdaq edged up 0.21%. Market sentiment was primarily driven by expectations of Federal Reserve rate cuts. Investors shifted focus from large-cap to small-cap stocks, with industrial shares leading the day’s rally. Notably, Dow components Caterpillar (CAT.US) and Boeing (BA.US) saw increases of 4.28% and 3.87%, respectively.
Corporate earnings reports played a significant role in market movements. UnitedHealth (UNH.US) surged 6.5% after beating expectations, further boosting the Dow. Bank of America (BAC.US) gained 5.35% on strong earnings and revenue, while Morgan Stanley (MS.US) shares climbed 0.91%, surpassing forecasts due to robust trading and investment banking results. In contrast, Charles Schwab (SCHW.US) fell 10.18% following a 17% decline in bank deposits to $252.4 billion and a 6% drop in net interest revenue.
Economic data had mixed impacts on the market. Retail sales in the US stalled in June from May 2024, following an upwardly revised 0.3% rise in the previous period. However, this data had minimal effect on overall market risk appetite, as investors remained focused on the broader economic outlook and potential monetary policy changes.
(S&P500 Index Monthly Chart)
(Retail Sales MoM%,U.S. Census Bureau)
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