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Happy Tuesday, Zingernation! Some lessons you just have to learn the hard way. Like how quickly you can lose money trading 0 DTE options (at least the way I do). Or if you’re going to unhook your boat from the dock, you should ensure that the engine is working properly.

–Aaron Bry & Nic Chahine

Today’s Price Action:

$SPY: +.59%
$QQQ: +.04%
$DIA: +1.81%

Plus, take a look at the biotech company that’s tackling one of the deadliest cancers in America.

TODAY’S MOST VOLATILE STOCKS

TODAY’S TOP STORY

Regional Bank Gains Hit Levels Unseen Since Silicon Valley Bank's Failure As Investor Sentiment Shifts To Small-Cap Names

What Happened: U.S. regional banks are experiencing sessions of significant gains, as growing expectations for interest rate cuts fueled an investor rotation from large-cap to small-cap stocks.

Basically: The SPDR S&P Regional Banking ETF ($KRE) — a widely followed gauge for the industry — rallied as much as 4.5% on Tuesday, marking the strongest session since December 2023.

So: Notably, the recent five-day rally of nearly 15% was the strongest for regional banks since November 2020.

The Recovery: With Tuesday’s move, regional banks have effectively recouped all losses suffered after March 9, 2023, characterized by the failure of Silicon Valley Bank and Signature Bank. Here are the specific names in the industry that are leading the charge.

PRESENTED BY THERIVA BIOLOGICS

A Disproportionate Rise In Young Women Is Part Of The High Unmet Need To Find Safe And Effective Treatments For Pancreatic Cancer

Pancreatic cancer is the third leading cause of cancer-related deaths in America and cases are increasing in young women more rapidly than in men. Theriva Biologics is working to address this through its candidate currently in clinical trials that uses viruses to attack cancer cells. To learn more about the science behind their work, visit their website at Therivabio.com.

FIVE MOVERS

Aehr Test Systems shares spiked higher after the close after the semiconductor-testing company topped earnings estimates.

Small Caps soared higher in Tuesday’s session with the $IWM closing up more than 3% as interest rate cut hopes fuel the rally.

$DJT shares dropped nearly 10% following Monday’s gain of almost 30% as traders appeared to book some profits.

Spirit Airlines shares took a hit in the after-hours session, dropping more than 6% after the airline reported weak revenue estimates.

Uber’s stock closed higher today after receiving some bullish coverage from an analyst at Wolfe Research with a price target of $90 a share.

ONE TRADE IDEA FOR TOMORROW

Gold Miners Hit 27-Month Peak, Bullion Breaks Record As Traders Decide September Rate Cut As Good As Done

Briefly: Gold reached new all-time highs Tuesday, with the commodity soaring above $2,460 per ounce and showcasing a robust 1.7% gain for the session, driven by heightened investor convictions that the Fed will cut interest rates at its September meeting.

Basically: Jerome Powell‘s remarks during his interview at the Economic Club of Washington Monday appear to have dispelled the last doubts about the start of rate cuts after the Fed chair confidently welcomed the latest inflation reports for the second quarter.

Quoted: "We've had now three better readings. And if you average them, it's a pretty good pace," Powell said. He further hinted the Fed would be willing to act by lowering interest rates if labor market conditions unexpectedly weaken.

So: Fed futures indicate traders are fully pricing in a rate cut at the September meeting, placing 93.3% odds of a 25-basis-point cut and a marginal 6.7% chance on a larger 50-basis-point cut, according to the CME Group‘s FedWatch tool. Here are some of the names in the space that analysts are bullish on.

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