Wall Street continues to experience a series of memorable days, with the bulls riding the rally with increasing confidence, certain that the Federal Reserve will begin cutting interest rates in September.

Fed futures currently indicate a 100% probability that policymakers will cut interest rates in two months, according to the CME Group‘s FedWatch tool.

This time, blue-chip stocks and gold are stealing the spotlight by breaking their all-time highs, while small caps, as tracked by the iShares Russell 2000 ETF IWM, have posted their fifth consecutive day in the green, marking their best five-day rally in over four years.

The Dow Jones Industrial Average surged to 40,800 points at 12:30 p.m. ET, up 1.5%, marking its best session since late May. Sector-wise, industrials rose 2.1%, eyeing the strongest one-day gain since October.

The S&P 500 increased marginally by 0.3%, while tech stocks in the Nasdaq 100 slipped by 0.4%, as the rotation from large-cap tech to small-cap and cyclical laggards continues.

Gold, as tracked by the SPDR Gold Trust GLD, rose 1.6% to $2,460 per ounce, as Treasury yields sharply fell following Powell’s dovish remarks on Monday and a stagnation in retail sales growth in June. The iShares 20+ Year Treasury Bond ETF TLT rallied 1.1%.

Oil prices dropped to $80 a barrel, down 1%, heading for the lowest close in nearly a month.

Bitcoin BTC/USD fell by 0.5%, on track to snap a four-day losing streak.

Chart of The Day: Blue-Chip Stocks Achieve All-Time Highs

Image: Benzinga Pro

Tuesday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	1-day % change
Russell 2000	2,240.18	2.3%
Dow Jones	40,816.48	1.5%
S&P 500	5,646.17	0.3%
Nasdaq 100	20,296.39	-0.4%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY was 0.2% higher to $562.48.
• The SPDR Dow Jones Industrial Average DIA rose by 1.4% to $408.06.
• The tech-heavy Invesco QQQ Trust (ARCA: QQQ) eased 0.5% to $493.58.
• Sector-wise, the Industrials Select Sector SPDR Fund XLI outperformed, up by 2.2%, while the Technology Select Sector SPDR Fund XLK lagged, down 0.9%.

Tuesday’s Stock Movers

• Bank of America Corp. BAC soared over 5%, marking new all-time highs and the strongest day in 2024 amid stronger than expected results in the second quarter.
• Other stocks reacting to company earnings were UnitedHealth Group Inc. UNH, up 5.3%; Morgan Stanley MS, up 2.6%; Charles Schwab Corp. SCHW, down over 8%; Progressive Corp. PGR, down 3.4%; PNC Financial Services Group PNC, up 4.4% and State Street Corp. STT, up 5.9%.
• Boeing Company BA rose over 4% as Bernstein increased the company’s price target from $215 to $222 amid a restart of China deliveries.
• Grail Inc. GRAL surged over 18% following the company’s announcement that it successfully enrolled more than 35,000 participants for its potential multi-cancer early detection test.
• Match Group, Inc. MTCH shares are trading higher on Tuesday after activist investment fund Starboard Value sent a letter to the company outlining initiatives to improve growth, profitability, and capital allocation.
• Shares of Trump Media & Technology Corp. DJT dropped over 8% on Tuesday, following a surge of more than 30% the previous day.
• Pacific Biosciences of California, Inc. PACB gained 28%, topping the performance within Russell 2000 constituents.

Read Now:

• Rate-Sensitive Cyclical Stocks Poised For Rally As Fed Prepares To Cut Rates: ‘We’re On The Path To Goldilocks,’ Says Bank Of America

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