Dow rally drives Wall St higher as rate-cut hopes stay strong
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The Dow led Wall Street's main indexes higher on Tuesday, boosted by UnitedHealth's strong results and as unexpectedly robust retail sales data signaled a still-resilient U.S. economy. UnitedHealth Group jumped 4.3% following a second-quarter profit beat, lifting the blue-chip Dow and the S&P 500 Health Care index to all-time highs. Bank of America jumped 3.6% after an upbeat net interest-income forecast and better-than-expected second-quarter profit, steering the S&P 500 Financials index to a record high. However, traders are fully pricing in a rate reduction by September, with the odds of a 25-basis-point cut standing at 93%. The small-cap Russell 2000 index jumped 2% to its highest level since January 2022. Strong bets on a rate cut by the U.S. Federal Reserve in September and a second term for presidential candidate Donald Trump following an assassination attempt had prompted an upbeat start to the week for Wall Street. At 9:56 a.m. ET, the Dow Jones Industrial Average was up 388.12 points, or 0.97%, at 40,599.84, the S&P 500 was up 20.10 points, or 0.36%, at 5,651.32, and the Nasdaq Composite was up 33.73 points, or 0.18%, at 18,506.29. The S&P 500 Communication Services index jumped 1%, led by an 8.3% rise in Tinder-owner Match, after a report that activist investor Starboard has a stake of over 6.5% in the company and was pushing for a possible sale if a turnaround wasn't successful.
#DowJones #WallStreet #Ratecut #Unitedhealth #RetailSales #BankOfAmerica #Russell2000 #FederalReserve #DonaldTrump #S&p500
https://www.kitco.com/news/off-the-wire/2024-07-16/dow-rally-drives-wall-st-higher-rate-cut-hopes-stay-strong
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