Investors are pouring money into companies that are key indicators of the U.S. economy ahead of the 2024 election and a potential rate cut by the Federal Reserve. The Dow Jones Industrial Average surged 742 points, marking its best day of the year, led by United Health, Caterpillar, Boeing, and Home Depot. Meanwhile, smaller U.S.-focused companies in the Russell 2000 saw a 3.5% increase, hitting its highest level since January 2022. The momentum coincides with the Republican National Convention, with former President Trump naming Senator JD Vance as his VP pick. Federal Reserve Chairman Jerome Powell's comments on potential rate cuts also impacted market expectations, with a rate cut in September now predicted by 90% of participants. The Dow 30 is playing catch-up to the S&P 500's rise, with the Nasdaq Composite still leading the way with AI darlings like Nvidia and Apple driving growth.