The Dow Jones Industrial Average rose more than 700 points to close at another record high as the bull run appeared to broaden.
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribegained 0.64%, while the Nasdaq inched up 0.2% as tech was left out of the rally. The yield on the 10-year, with a 93.3% probability of a quarter percentage point cut and a 6.7% probability of a half percentage point cut.
That may come as a relief to seasoned investors concerned by the market's reliance on a handful of tech stocks during the 21-month bull market." because"the market itself as an index is up 20% year to date; typical stock in the S&P 500 is up 7%. So, that gap has largely been driven by the major five companies."
Kostin also explained why interest rate cuts could benefit small caps:"The expectation is the Fed will be cutting interest rates starting in September and probably in December, as well, and that historically has been a benefit for small-cap companies where, basically, 30% of their borrowings are in the floating rate form. And, therefore lower interest rates, lower interest expenses, higher earning estimates would be a consequence of that.
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