The Dow Jones Industrial Average closed at a record high, surging 743 points in its biggest one-day gain in over a year to reach 40,954.48, up 1.85%. This increase is fueled by strong retail sales data, positive earnings reports, and expectations of a Federal Reserve interest rate cut in September. UnitedHealth, reporting better-than-expected earnings, contributed to the rise as it has the largest impact in the Dow. The S&P 500 also hit a new high while the Nasdaq rose more modestly. Small-cap stocks in the Russell 2000 index outperformed, suggesting sustained market strength. The continued rally is supported by anticipation of the Fed rate cut making borrowing cheaper, benefiting smaller businesses. This week’s success follows last week's favorable inflation report and demonstrates confidence in economic growth.