By CCN Markets: The Dow and broader U.S. stock market rallied sharply on Wednesday, as investors reacted to the increasingly-likely prospect of another Federal Reserve interest rate cut this year.

Despite the rally, a sharp drop in share repurchases suggests that the bull market may not have much room to grow. Investors may be surprised just how much stock buybacks have contributed to Wall Street’s gains in the last five years.

Dow Spikes; S&P 500, Nasdaq Follow

All of Wall Street’s major indexes reported firm gains Wednesday, mirroring a strong pre-market for Dow futures. The Dow Jones Industrial Average gained 240.29 points, or 0.9%, to close at 26,202.73.

Dow
Dow Jones Industrial Average climbs back above 26,000 on Wednesday. | Source: Yahoo Finance.

The broad S&P 500 Index of large-cap stocks advanced 0.8% to 2,924.43. All 11 primary sectors contributed to the rally.

Surging technology shares propelled the Nasdaq Composite Index sharply higher. The tech-laden benchmark rose 0.9% to 8,020.21.

Share Repurchases Hit 18-Month…



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Author: Sam Bourgi

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