US STOCKS - Dow Notches Record Closing High, Small Caps Surge on Rate Cut Bets

WALL STREET - NEW YORK, July 16 (Reuters) - Wall Street stocks rose and the Dow Jones Industrial Average hit an all-time closing high on Tuesday after U.S. retail sales data supported the view that the Federal Reserve is approaching its easing cycle, reining in inflation while avoiding a recession.

All three major U.S. stock indexes advanced on the day, but weaker megacap growth stocks, led by Nvidia Corp and Microsoft Corp, capped the tech-heavy Nasdaq's gains.