Stock market news today: S&P 500, Dow surge to record highs as blue chip index gains over 700 points

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The Dow Jones Industrial Average (^DJI) surged more than 700 points on Tuesday to secure another all-time closing high. The benchmark S&P 500 (^GSPC) also notched another record amid growing conviction an interest rate cut is near. The blue-chip index rose more than 1.8%, thanks in part to positive earnings from UnitedHealth (UNH), which saw shares rise nearly 7%. Stocks closed in the green across the board as investors assessed better-than-expected earnings across multiple sectors, along with a retail sales surprise. The S&P 500 finished the day up about 0.6% while the tech-heavy Nasdaq Composite (^IXIC) moved up 0.2%. Bank of America (BAC) and Morgan Stanley (MS) each ended the day on positive footing. BofA's quarterly profit fell but beat estimates, while Morgan Stanley profit jumped, both offering signs of an investment banking revival. More broadly, stocks are holding onto gains after Chair Jerome Powell signaled the Federal Reserve is gearing up to start lowering rates soon, given recent solid inflation prints. Retail sales came in flat but better than expected in June, data out Tuesday showed, adding to the easing in price pressures that have boosted faith in a September cut — a prospect that has already wakened wider bullishness for stocks beyond techs. Traders were pricing in a 100% likelihood the Fed will bring down borrowing costs that month, according to CME FedWatch data. But some lawmakers have warned a Fed pivot before November's presidential election could be seen as a partisan move. At the same time, political matters continued to preoccupy a market betting that former President Donald Trump is an even clearer frontrunner for the White House after he survived an assassination attempt over the weekend. The Republican candidate's pick of Sen. J.D. Vance as his running mate is seen as strengthening his chances.