Wall Street Surge: Dow Hits All-Time High Amid U.S. Retail Strength

Wall Street stocks surged as the Dow Jones Industrial Average closed at an all-time high, boosted by strong retail sales data. The Nasdaq lagged due to weaker performance from Nvidia and Microsoft. Small caps and transportation stocks outperformed, driven by expectations of imminent interest rate cuts.

Wall Street stocks soared on Tuesday, with the Dow Jones Industrial Average closing at a record high. The surge was fueled by U.S. retail sales data that indicated the Federal Reserve might be nearing the end of its easing cycle, curbing inflation without triggering a recession.

Despite gains across all three major U.S. stock indexes, tech-heavy Nasdaq's ascent was limited by weakening performances from Nvidia and Microsoft. Small-cap stocks continued their upward trajectory, with the Russell 2000 extending its winning streak to five days, reaching its highest level since January 2022.

Dow transportation stocks outshone the broader market, marking their biggest one-day percentage gain since November and the highest close since August 2023. Value stocks, which have lagged behind growth stocks and the S&P 500 this year, climbed 1.5%, highlighting increased investor interest in undervalued market sectors.

(With inputs from agencies.)