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 30-stock index vaulted 742.82 points, or 1.9%, to 40,954.54.
The S&P 500 index picked up 35.99 points to 5,649.09.
The NASDAQ grew 36.77 points to 18,509.34.
Industrial bellwether Caterpillar climbed more than 4%, making it the second-biggest gainer in the Dow behind UnitedHealth. The insurer surged more than 6% on the back of better-than-expected second-quarter results.
Financials — another trailing bull market group — gained after earnings from Bank of America and Morgan Stanley came in ahead of analyst forecasts. Bank of America jumped 5%, while Morgan Stanley added more than 1%.
Retail sales data also came in better than anticipated, which could ease concerns that the consumer was buckling. June sales were unchanged, while economists polled by Dow Jones predicted a decline of 0.4%. Excluding autos, sales rose 0.4%, a larger gain than the 0.1% consensus forecast.
Prices for the 10-year Treasury strengthened, lowering yields to 4.16% from Monday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.08 at $80.83 U.S. a barrel.
Gold prices gained $43.00 to $2,471.90
