Broadening US market rally gets boost from dovish Fed

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The broadening US market rally is being boosted by a dovish Federal Reserve, as investors look beyond growth and technology stocks. Sectors such as financials, industrials, and energy are outperforming the S&P 500's year-to-date gain of 9.7%, easing concerns about the market's reliance on a small group of stocks. The Fed's confidence in tamping down inflation and cutting interest rates this year has increased investor confidence in the economy's resilience. The Magnificent Seven group of megacap stocks, which includes Apple, Nvidia, and Amazon.com, accounted for 40% of the S&P 500's gain, compared to over 60% last year. The wider rally indicates less concentration and susceptibility to correction. While some megacap stocks have performed well, others, such as Apple and Tesla, have declined. The Department of Justice's allegations against Apple for monopolizing the smartphone market highlight regulatory risks for Big Tech. The broadening trend could be affected if the economy falters or overheats. Some investors expect a pullback after the S&P 500's 27% gain since late October, while others believe the trend will continue.

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https://finance.yahoo.com/news/broadening-us-market-rally-gets-224650088.html