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Dow jumps 742 points, small caps celebrate USA trade

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Dow jumps 742 points, small caps celebrate USA trade

Former White House Council of Economic Advisers Chairman Kevin Hassett unpacks affordability issues in the macroeconomy and reacts to Trump’s V.P. pick, J.D. Vance.

Investors stepped up pumping money into companies that are considered solid barometers of the U.S. economy as investors eye the 2024 election and a looming rate cut by the Federal Reserve. 

The Dow Jones Industrial Average soared 742 points or 1.85% registering its best day of the year and the 21st record close of 2024, as tracked by Dow Jones Market Data Group. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 40954.48 +742.76 +1.85%

Dow Jones Industrial Average

Powering the rally; United Health, Caterpillar, Boeing and Home Depot, while Merck, Microsoft and Intel dipped. 

Ticker Security Last Change Change %
UNH UNITEDHEALTH GROUP INC. 548.83 +33.43 +6.49%
CAT CATERPILLAR INC. 360.58 +14.78 +4.27%
BA.HD n.a. n.a. n.a. n.a.
MRK MERCK & CO. INC. 125.43 -2.71 -2.12%
MSFT MICROSOFT CORP. 449.52 -4.44 -0.98%
INTC INTEL CORP. 34.34 -0.12 -0.35%

The more standout trade came in U.S. Centric small caps in the Russell 2000. It rose 3.5% and is now at the highest level since January 2022 and has gained 11.7% this year.

“The last time the index closed higher by >1% for five consecutive sessions was in 2020, prior to that this had not happened since 1998” wrote Michael P. Reinking, CFA in the NYSE’s Market Insights. 

iShares Russell 2000 ETF

These businesses get the bulk of their profits domestically. Super Micro Computer, Microstrategy, Carvana and E.L.F and Comfort Systems USA are the largest holdings, as outlined by FTSE Russell.  

Ticker Security Last Change Change %
SMCI SUPER MICRO COMPUTER INC. 876.96 -20.72 -2.31%
MSTR MICROSTRATEGY INC. 1,664.30 +53.02 +3.29%
CVNA CARVANA CO. 145.02 +2.91 +2.05%
ELF E.L.F. BEAUTY INC. 189.12 -4.93 -2.54%
FIX COMFORT SYSTEMS USA INC. 330.03 +7.32 +2.27%

TRUMP, J.D. VANCE AND STOCK MARKET MOMENTUM: HERE’S WHY

The momentum comes with the Republican National Convention underway, which kicked off with former President Trump naming Senator JD Vance (R) Ohio as his Vice President pick. 

Former US President Donald Trump, left, and Senator JD Vance, a Republican from Ohio and Republican vice-presidential nominee, during the Republican National Convention (RNC) at the Fiserv Forum in Milwaukee, Wisconsin, US, on Monday, July 15, 2024. (Eva Marie Uzcategui/Bloomberg via Getty Images / Getty Images)

And also comes after Trump dodged an unprecedented assassination attempt on Saturday, escaping with minor injuries. 

TRUMP NAILS TOP DONATIONS FROM SILICON VALLEY BILLIONAIRES

Donald Trump is rushed offstage during a rally

Republican presidential candidate former President Donald Trump is rushed offstage during a rally on July 13, 2024 in Butler, Pennsylvania. (Anna Moneymaker/Getty Images / Getty Images)

SALES OF JD VANCE’S ‘HILLBILLY ELEGY’ MEMOIR SPIKE AFTER TRUMP PICKS SENATOR AS RUNNING MATE

It also follows comments from Federal Reserve Chairman Jerome Powell on Monday when he signaled that policymakers can cut rates before inflation falls to their 2% target. The market took notice, and 90% of participants now expect a rate cut in September, as tracked by the CME’s FedWatch Tool, which tracks probabilities of rate moves. 

The Dow 30, up 8.6% this year, is playing catch-up to the S&P 500’s nearly 19% rise. It also hit a fresh record Tuesday.

As markets shift, the Nasdaq Composite still remains in the lead, up 23% year-to-date powered by AI darlings including Nvidia, Meta, Apple and Microsoft. 

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