U.S. equities extended their rally to fresh records on Aug. 12 as the S&P 500 advanced 1.12% to 6,444.85, the Nasdaq Composite gained 1.39% to 21,681.72 and the Dow Jones Industrial Average added 1.07% to 44,446.32. The S&P 500 has now climbed about 33% from its April low and has logged a record close 16 times this year. Momentum carried into the next session: minutes after the Aug. 13 opening bell the S&P 500 touched 6,466.73, the Nasdaq reached 21,767.73 and the Dow rose to 44,628.02. Wolfe Research said roughly 80% of S&P 500 constituents beat second-quarter earnings estimates with an average surprise of 8.4%, while 69% topped revenue forecasts and nearly half offered upbeat guidance for the current quarter. The latest advance has pushed valuation gauges beyond the heights of the dot-com era. Market data show the combined capitalization of U.S. stocks now equals about 211% of gross domestic product, eclipsing the 2000 peak of roughly 144%. The Nasdaq’s market value alone stands at 105% of GDP, and the S&P 500 technology sector trades at 10 times sales versus about 7.8 times at the dot-com zenith. The broader index is valued at 3.2 times sales and 26.7 times peak earnings, both all-time highs. Investors are betting that a cooling inflation backdrop and the prospect of Federal Reserve rate cuts as soon as September will continue to underpin earnings growth, extending a rally dominated by mega-cap technology companies.