Dow surges more than 700 points as the stock market gears up for rate cuts

Wall Street is experiencing a notable shift in sentiment, with investors hoping for interest rate cuts by the Federal Reserve in September. The slowdown in inflation and strong corporate earnings have raised optimism that the central bank can manage prices without triggering a recession. Despite this positive outlook, tech stocks have taken a hit, causing a decline in the S&P 500 and Nasdaq. Small-cap stocks, on the other hand, have seen gains as investors anticipate lower rates. The performance of big tech firms following underwhelming earnings results suggests that investors are becoming impatient with AI investments that have yet to generate significant revenue.