Dow soars more than 500 points, sending Wall Street to new highs on rate-cut hopes

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Dow soars more than 500 points, sending Wall Street to new highs on rate-cut hopes
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The Dow Jones Industrial Average continued to set record highs Tuesday, boosted by UnitedHealth’s strong results and growing confidence that the Federal Reserve will cut interest rates in Sep…

The Dow Jones Industrial Average continued to set record highs Tuesday, boosted by UnitedHealth’s strong results and growing confidence that the Federal Reserve will

Among other corporate earnings, 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. A Commerce Department report showed retail sales were unchanged in June, when they were expected to fall 0.3%, while retail sales minus automobiles jumped 0.4%, versus forecasts of a flat reading.

“Investors, at first, were likely disappointed because it might not assist in helping the Fed make a decision about cutting rates. But at the same time, it’s offering comfort that the US economy is not headed toward recession anytime soon,” said Sam Stovall, chief investment strategist, CFRA Research.Fed Chairman Jerome Powell said on Monday that the latest economic data “add somewhat to confidence” that inflation was returning to the central bank’s 2% target.

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