so big Tech's recent rally let's talk about that starting in late October has added around $2 trillion in market value to the NASDAQ 100 and Wall Street betting that rally continues to the end of the year as comes despite weak outlooks from companies like apple and meta in their third quarter earnings reports you know big picture here Julie obviously investors are feeling more confident they've looked at these milder inflation reports they've decided the feds mve to the sidelines and yes it's rare yes It's Tricky but maybe JP will be able to stick that soft Landing that we hear so much about so you're looking to place bets and one place investors have done that is in m is in names like the microsofts the apples right and we spoke to Dr Ed yardeni this week on our show very well-known well-respected Economist and strategist you know he's he's not a Trader he's an investor and we asked him where do you want to put money not just the end of the year but into 2024 and he piped right up with technology another sector he's overweight you know it's so interesting to me on Tuesday when we had that CPI report that really caused that pivot in the market and a broadening out of the rally we had a lot of investors say here's the broadening out that we've been looking for small caps are doing well it's not just limited to Tech but guess what if you look at the recent surge that we have seen in stocks it has been about big Tech and not just about big Tech but about the Magnificent 7 which accounted for about 2third of that $2 trillion increase and if you look at this chart that we prepared here so the purple line at the top is the New York Fang plus index which is a effectively the Magnificent 7 although there are 10 components in that index and you see on the right side of your screen there The Surge that those stocks had which effectively saved the NASDAQ from entering uh correction the next line there the blue line is the NASDAQ 100 so this shows you the extent to which the largest of large cap Tech has outperformed next the yellow line is the S&P 500 and finally the equal weight S&P 500 so that shows how unroad the rally this year has been and on the right side of your screen there the most recent it doesn't seem to be changing substantially at least not yet it is still being pulled upward by the largest of large cap Tech and some themes here too I mean listen when rates drop the way they have big Tech can work we know that there's also some some some themes that are just very idiosyncratic to Tech I mean there is this still this boom of interest in AI investors certainly believe listen that's going to boost the financial performance of some names and they've try to sort of look around what could really benefit they decided it name's like Microsoft and it name's like Nvidia which which reports next week yeah and of course friend of the show Dan IES is all in onap and has been on big cap AI out with a new note today effectively doubling down on the thesis that he has been on for some quite some time that we are seeing this yearend rally in technology that has begun IES has been consistent he has been
