STORY: The Dow closed at an all-time high on Tuesday after U.S. retail sales data supported expectations the Federal Reserve will start cutting interest rates soon.

The Dow gained more than 1.8%, the S&P 500 added more than six-tenths of a percent and the Nasdaq added two-tenths.

Investors continued their recent rotation out of some megacap tech stocks, with Nvidia and Microsoft both ending lower.

Meanwhile, small caps extended their rally. The Russell 2000 index notched its fifth straight day of gains greater than 1%, its longest winning streak since April 2000.

While most investors have cheered the recent broadening of market gains, Cole Smead, CEO and portfolio manager at Smead Capital Management, sees it as a warning for stocks over the next decade.

"The St. Louis Fed publishes data called household equities as a percentage of total assets. When you look at that data set, highs in that data set are very damning for forward returns. We're at the highest level of household ownership of U.S. stocks in the history of that data set. [FLASH] So it's likely we either don't make money or lose money in the S&P 500, including dividends reinvested, if that data is correct. Now is that a popular argument that I just made? No, it's not."

Among individual movers, UnitedHealth Group jumped 6.5% after reporting profit that beat Wall Street estimates.

Bank of America's second-quarter profit also beat expectations, and underwriting fees rose as capital markets resurged. The second-largest U.S. bank also provided upbeat net interest income guidance, sending its shares up more than 5%.

Charles Schwab, however, reported a dip in net interest income; its shares slid more than 10%.

And Tinder parent Match jumped 7.5% on news that activist investor Starboard has a stake of over 6.5% in the company.