The S&P 500 climbed 0.6% to set an all-time high for the 38th time this year. Unlike other record-setting days, Tuesday’s came after a widespread rally where nearly nine out of every 10 stocks in the S&P 500 rose, instead of just the handful of influential Big Tech stocks that have been behind most of this year's returns.
The Dow Jones Industrial Average leaped 742 points, or 1.8%, to lead the market a day after setting its own record. The Nasdaq composite lagged with a gain of 0.2%, as the stars dimmed for some of the year's biggest winners.
They helped offset drops for a handful of massive Big Tech stocks, whose sizes give their movements an outsized effect on indexes. Nvidia, for example, was the heaviest single weight on the S&P 500 after falling 1.6%.
But that decline was just a minor pullback compared with how much the chip company’s stock rocketed earlier amid
Plus, some market watchers have been hoping for just such a broadening of the stock market’s performance, because a market with many stocks rising is seen as healthier than one driven by just an elite few stocks.
Only 24% of companies in the S&P 500 had been beating the index so far this year, according to
In another signal of more companies participating in the market’s rally, stocks of smaller companies also outpaced their larger rivals after having lagged for a while.
The Russell 2000 index of smaller stocks jumped 3.5%, nearly six times the S&P 500’s gain. It's coming off its best week since November, as stocks from other beaten-down corners of the market also rally following signals that the
Several big winners from the day before, which benefited from heightened expectations for former President
All told, the S&P 500 rose 35.98 points to 5,667.20. The Dow jumped 742.76 to 40,954.48, and the Nasdaq composite added 36.77 to 18,509.34.
In the bond market, some of the prior day’s moves also reversed themselves. Longer-term yields sank more than shorter-term yields after a report showed sales at
The yield on the 10-year
Yields have eased on rising expectations that inflation is slowing enough to convince the
Tuesday’s stronger-than-expected data on retail sales may give Fed officials some pause, because too-strong activity could keep upward pressure on inflation. But traders are still betting on a 100% probability that the Fed will cut its main interest rate in September, according to data from CME Group. A month ago, they saw a 70% chance.
Risks lie on both sides of the tightrope that the
In stock markets abroad, indexes were lower across much of
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AP Business Writer
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