MARKET WRAP

The S&P 500 and Dow Jones Industrial Average closed at record highs today. The S&P was up 0.6%, while the Dow surged by 755 points for its best day in over a year.

The small-cap Russell 200 was up 3.5%, marking its fifth straight day of gains. The move comes as the tech-heavy Nasdaq was up less than a quarter of a percent.

According to Bloomberg, the Russell 2000 has outperformed the Nasdaq 100 by nearly 11 percentage points over four sessions, a feat unseen since 2011.

The equal-weighted S&P 500 hit a new high, outpacing the standard index, suggesting a potential broadening of the market rally beyond mega-cap stocks.

CNBC notes that by mid-day, at least 76 stocks in the S&P 500—or more than one in seven names in the index—hit 52-week highs. The list includes JPMorgan, Goldman Sachs, Bank of America, American Express, FedEx, T-Mobile, Electronic Arts, Ford, and Royal Caribbean, to name a few.

On the other hand, just four names were making 52-week lows, including LuluLemon and Starbucks.

Mega-cap tech was noticeably absent from the rally. Nvidia closed the day down nearly 2%, while Alphabet, Meta, and Microsoft were down around 1%.

Technology was the only sector to close in the red, down 0.34%.

Industrials was the top-performing sector, up more than 2.5%.

Homebuilders were among the top-performing groups on the day, with the XHB gaining nearly 6% as investors bet on a September rate cut.

MRKT MATRIX: July 16, 2024

Today’s Top Stories:

• Dow rallies 700 points for best day in more than a year, Russell 2000 small-cap index jumps 3% (CNBC)

• Small Caps Beat Nasdaq 100 by Most Since 2011 (Bloomberg)

• Traders see the odds of a Fed rate cut by September at 100% (CNBC)

• Gold jumps to record above $2,460 an ounce on hopes Fed will soon cut rates (CNBC)

• Oil Bulls Face Make-or-Break Moment on Price Rally (Bloomberg)

• Three Major Takeaways From Big Banks’ Earnings (WSJ)

• Charles Schwab Stock Slides After Brokerage Reports Lower Bank Deposits, More Short-Term Funding (WSJ)

• UnitedHealth Stock Rises After Earnings Beat Eases Cyberattack Concerns (Barron’s)

• Exclusive: Taboola to sell ads for Apple (Axios)

Today’s MRKT Call is Presented by CME Group

Can the Small Cap Rally Last?

Dan Nathan, Guy Adami and Carter Worth break down the top market headlines and bring you stock market trade ideas for Tuesday, July 16th.

Timecodes

• 0:00 - Intro

• 4:30 - Russell 2000

• 13:45 - Nasdaq 100

• 19:45 - Rates

• 23:00 - Gold

• 25:15 - Crude Oil

• 28:00 - UAL, JETS & XAL

• 31:30 - DPZ

• 34:00 - Audience Q&A

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