Markets climb as a handful of tech stocks power the rally

Yahoo Finance Senior Business Report Ines Ferre joins Market Domination Overtime to break down what's driving stocks higher into the closing bell and why a tech rally led by a narrow group of names is powering the market's gains

And let's break down where we're seeing some of the biggest gains during today's market session.

Yeah, Brooke, and if we take a look under the hood where we saw the sector action, we saw that utilities and consumer discretionary were really in the lead, but you saw of course technology that also edged higher. and part of this had to do with that concentration that you're talking about among the mega cap names. So you can see on the left hand side of the screen on our Wi-Fi interactive, the Nasdaq 100, you're looking at Nvidia. That's a new all-time high for Nvidia, back-to-back record high for Nvidia. Then you're also seeing Amazon that's higher, Apple that is higher, Microsoft that is higher. There's been a concentration, a narrowing of market breath when it comes to this uh market. In fact, you've got 21% of the S&P 500 is now comprised of Apple, Nvidia and Microsoft. So you've have been seeing this narrow breath within the market and why some strategist are saying you should really broaden out uh your portfolios, uh even though they're still bullish on the AI trade. If we take a look also at where we saw today action in the semiconductor space, as I mentioned in the mega caps, but look at uh Broadcom of more than 3%. AMD also hitting a new record for the day uh for uh as AMD's up more than 2 and a half%. But look at the semiconductor space in general as you see this chart. You're looking at Intel that's lower, ASML that's lower, applied materials also lower, but yet you've got these other mega caps that are in green territory. So again, this narrow breath that we have been seeing with this rally as we see the Nasdaq and the S&P 500 at record highs, Brooke.

And many investors watching out for these earnings expectations. analysts now pricing in a roughly 25% increase in third quarter S&P 500 profits from a year ago. So that's certainly leading to momentum as well. What we will see within these quarterly results. Enis Frei, thanks so much. Appreciate it.