Dow Rallies To All-Time Highs, Small Caps Outperform Tech, Gold Hits Records On Heightened September Rate Cut Bets: What's Driving Markets Tuesday?

Wall Street continues to experience a series of memorable days, with the bulls riding the rally with increasing confidence, certain that the Federal Reserve will begin cutting interest rates in September.

Fed futures currently indicate a 100% probability that policymakers will cut interest rates in two months, according to the CME Group‘s FedWatch tool.

The Dow Jones Industrial Average surged to 40,800 points at 12:30 p.m. ET, up 1.5%, marking its best session since late May. Sector-wise, industrials rose 2.1%, eyeing the strongest one-day gain since October.

The S&P 500 increased marginally by 0.3%, while tech stocks in the Nasdaq 100 slipped by 0.4%, as the rotation from large-cap tech to small-cap and cyclical laggards continues.

Oil prices dropped to $80 a barrel, down 1%, heading for the lowest close in nearly a month.

Bitcoin (CRYPTO: BTC) fell by 0.5%, on track to snap a four-day losing streak.

Chart of The Day: Blue-Chip Stocks Achieve All-Time Highs

Image: Benzinga Pro

Tuesday’s Performance In Major U.S. Indices, ETFs

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Tuesday’s Stock Movers

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