US Equities Extend Gains; Dow Surges To Record Closing High

US investor sentiment was buoyed by expectations of Federal Reserve rate cuts, while retail sales data had minimal impact on risk appetite. The Dow jumped 742.76 points or 1.9 percent to 40,954.48, the S&P 500 climbed 35.98 points or 0.6 percent to a new record closing high of 5,667.20 and the Nasdaq rose 36.77 points or 0.2 percent to 18,509.34. In earnings news, UnitedHealth surged 6.5% after reporting better-than-expected results, also bolstering the Dow. Bank of America climbed 5.3% on earnings and revenue beats. Morgan Stanley shares rose 0.8% after exceeding Wall Street forecasts, driven by strong trading and investment banking outcomes. Conversely, Charles Schwab declined of 10.2% following a 17% drop in bank deposits to $252.4 billion and a 6% decrease in net interest revenue.

Commerce Department report showing U.S. retail sales came in unchanged in the month of June. The Commerce Department said retail sales came in flat in June after rising by an upwardly revised 0.3 percent in May. Excluding a sharp drop in sales by motor vehicle and parts dealers, retail sales climbed by 0.4 percent in June after inching up by 0.1 percent in May. Ex-auto sales were expected to creep up by 0.1 percent.

US treasuries rebounded following the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 6.2 basis points to 4.167 percent. Looking ahead, trading may be impacted by reaction to reports on industrial production and housing starts as well as the Federal Reserve's Beige Book.

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