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Dow Tops New Record as Bull Market Seen Broadening

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Wall Street stock indexes closed higher Friday, on bets that the U.S. Federal Reserve will cut interest rates in September, while big banks fell after reporting mixed results.

Some of the market's most valuable companies bounced back after dipping in the previous session, with rallies by Apple and Nvidia.

The small-cap Russell 2000 rallied for a third straight day and reached the highest since 2022, while the S&P 400 Mid Cap index also jumped. The two indexes have lagged the S&P 500 this year. With stock indexes trading around record highs, investors are betting on strong profit growth from companies beyond Nvidia and other heavyweights that have benefited from explosive growth in artificial intelligence computing.

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