Stock market today: Broad rally propels Wall Street to records, Dow Jones jumps 740 points

NEW YORK (AP) — U.S. stocks hit record highs again Tuesday. What made the party even more exciting this time was the number of companies joining in the fun.

The S&P 500 index climbed 0.6%, setting an all-time record for the 38th time this year. Unlike other record-breaking days, Tuesday came after a broad-based rally that saw nearly nine out of 10 stocks in the S&P 500 rise, rather than just Big Tech's handful of influential stocks which are responsible for most of this year's returns.

The Dow Jones Industrial Average jumped 742 points, or 1.8%, to lead the market, a day after setting its own record. The Nasdaq Composite Index lagged with a 0.2% gain, as the stars dimmed for some of the year's biggest gainers.

UnitedHealth Group boosted the market after reporting best profit for the spring than expected by analysts, despite the losses it suffered due to a massive cyber attackIts stock rose 6.5% and the health care company reported growth in the number of people served at its Optum and UnitedHealth businesses.

Bank of America rose 5.3% after also reporting higher-than-expected profit for the latest quarter. It benefited growth of its investment banking business.

They helped offset declines in a handful of massive Big Tech stocks, whose size gives their moves an outsized effect on the indices. Nvidiafor example, was the heaviest single weight on the S&P 500 after falling 1.6%.

But the decline was only a minor setback compared to the chip company's stock value. rocketed earlier Amid the Wall Street frenzy over artificial intelligence technology, Nvidia shares are still up 155.2% year-to-date.

Moreover, some market watchers are hoping for such a broadening of stock market performance because a market with many rising stocks is considered healthier than a market driven by just a few elite stocks.

Only 24% of S&P 500 companies have outperformed the index year-to-date, according to Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management. That’s down from last year’s already low 26%.

In another sign of increased corporate participation in the market recovery, stocks of smaller companies also outperformed their larger rivals after lagging for some time.

The Russell 2000 index of small caps jumped 3.5%, nearly six times the S&P 500's gain. It's coming off its best week since November, as stocks in other parts of the struggling market also rallied on signals that the U.S. economy remains strong and that an interest rate cut could be coming soon.

Several big winners from the previous day, who benefited from increased expectations for Former President Donald Trump to retake the White House, made some of their immediate jumps after Trump dodged an assassination attempt during the weekend.

Trump Media and Technology Group fell 9.1%, a day after jumping 31.4%. Shares of the company behind Trump Social truth The platform regularly fluctuates significantly every day, both up and down.

Overall, the S&P 500 rose 35.98 points to 5,667.20. The Dow Jones jumped 742.76 points to 40,954.48 and the Nasdaq Composite gained 36.77 points to 18,509.34.

In the bond market, some of the moves from previous days were also reversed. Long-term yields fell more than short-term yields after a report showing US retail sales held up last month, despite economists' expectations of a decline.

The yield on the 10-year Treasury note fell to 4.16% from 4.23% late Monday. It was 4.70% in April, a major development for the bond market and a strong boost to stock prices.

Yields have fallen on growing expectations that inflation slows down enough to convince the Federal Reserve to begin cutting interest rates The Fed kept its key interest rate at its highest level in more than two decades in hopes of slowing the economy enough to bring inflation completely under control.

The stronger-than-expected retail sales numbers released Tuesday may give Fed officials pause, as too much activity could keep upward pressure on inflation. But traders are still betting on a 100% chance that the Fed will cut its key interest rate in September, according to data from CME Group. A month ago, they put the probability at 70%.

Risks are present on both sides of the tightrope the Federal Reserve is currently walking. The central bank hopes to ease the brakes it is applying to the economy by keeping interest rates high at the right time. Easing too early could allow inflation to pick up, but easing too late could trigger a recession. Tuesday’s retail sales data suggested the economy remains resilient so far.

In overseas stock markets, stock indices were down in most European countries. Asian indices were mixed, with Hong Kong's Hang Seng falling 1.6 percent.