“The Dow has spent most of the past two years lagging the S&...

“The Dow has spent most of the past two years lagging the S&P 500 index, but it has new wind in its sails this summer on the hopes that the market rally will broaden from a narrow set of technology companies into a broader array of companies throughout the economy,” said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance.

This broadening market rally is underway as traders have become more optimistic on interest rate cuts, which should benefit small caps and companies with higher financing costs. Fed funds futures trading implies a 100% likelihood the Federal Reserve will lower rates in September, according to the CME FedWatch tool.

Looking ahead to Wednesday, United Airlines, Discover Financial Services, Johnson & Johnson and U.S. Bancorp are some of the names set to release quarterly earnings results.

On the economic front, the Fed’s Beige Book will also be released, as will housing starts and building permits data for June.