In a remarkable rally, the Dow Jones Industrial Average soared to a new record high on Tuesday, driven by gains in blue-chip stocks while tech stocks lagged behind. The Dow, which had already closed at its first record high in two months on Monday, experienced a notable increase of 1.7% or over 600 points during afternoon trading.

The S&P 500, currently closing in on its own record, saw a more modest increase of 0.3%, while the Nasdaq Composite declined by 0.3%. UnitedHealth (UNH) played a significant role in propelling the Dow's upswing as its stock soared by nearly 6% following better-than-expected earnings. Other companies contributing to the rally were Caterpillar (CAT) and Boeing (BA), with both stocks witnessing gains of over 4%.

The banking sector also witnessed notable gains on the S&P 500, as Bank of America (BAC) and State Street (STT) surged by more than 5% following their better-than-expected earnings reports. However, Charles Schwab (SCHW) experienced a decline of almost 9% after releasing their results.

Investors keenly await further earnings reports in the days and weeks ahead to gain insights into how companies are navigating through a challenging environment characterized by high interest rates and slowing economic activity. Recent gains in major stock indexes have been driven by large-cap technology stocks and expectations of a federal funds rate cut from the Federal Reserve, likely in September.

On Tuesday, several big-name tech stocks, including Nvidia (NVDA), Advanced Micro Devices (AMD), Micron (MU), and Broadcom (AVGO), experienced a decline. Microsoft (MSFT), Meta Platforms (META), and Alphabet (GOOGL) also witnessed losses. In contrast, small-cap stocks demonstrated strong performance with the Russell 2000 small-cap index surging by over 2% on Tuesday.

Treasury yields have recently fallen as expectations of a Fed rate cut grow. After stronger-than-expected retail sales data, Treasury yields were trading around 4.19%. Market participants are closely monitoring economic data releases and comments from Federal Reserve officials for insights into the timing of interest rate cuts.

Gold prices hit a new record, reaching around $2,470 per ounce, benefiting from hopes of rate cuts. In contrast, oil prices continued to decline due to concerns surrounding demand.

In a separate development, Match Group (MTCH) experienced a surge in its stock price as activist hedge fund Starboard Value disclosed a significant stake in the online dating giant. The fund has acquired approximately 6.6% of Match Group's shares, making it the third-largest shareholder. Match Group operates a portfolio of popular dating platforms, including Tinder, Hinge, and OkCupid.

Furthermore, Bank of America (BAC) witnessed a jump of over 5% as the bank exceeded estimates for second-quarter revenue and profit. Though net interest income dropped by 3% to $13.7 billion, below analyst expectations, higher fees and improved sales and trading revenue contributed to the bank's overall positive performance.

As market dynamics continue to evolve, investors are on high alert for further developments in earnings reports and government policy decisions that may impact stock performance.