Lisa covers markets and investing for CNBC.com and CNBC Pro.
The Dow Jones Industrial Average advanced to new highs on Tuesday, as the bull market broadened out beyond technology names on hopes of forthcoming interest rate cuts. The Dow surged by 742.76 points, or 1.85%, to close at 40,954.48. The 30-stock index hit an all-time high and closed at a record, in addition to notching its best session since June 2023. The small cap-focused Russell 2000 rose more than 3% for its fifth straight day of gains. The S&P 500 added 0.64%, closing at 5,667.20.
Traders now see 100% odds the Fed will lower rates in September, according to the CME FedWatch tool. A rate cut is seen as boosting small caps and industrials more reliant on borrowing costs than cash-rich, megacap technology stocks that have been riding a wave of optimism around artificial intelligence. In the last one week alone, the Russell 2000 has soared more than 11%, while the blue-chip Dow has gained more than 4%. The Nasdaq is up just 0.4% over the same period.
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