"The tech sector, as a sector in the second quarter, we saw earnings growing at a 20% rate. So it's still a very robust level in terms of growth," HSBC head of equity strategy for the Americas Nicole Inui says. "But what we're seeing now is this broadening of earnings growth. So we're seeing other sectors like financials, utilities, healthcare growing at a very similar rate. So tech is less of an outlier of what we saw in the... beginning of the year and in 2023."

Inui joins Madison Mills and Seana Smith on Catalysts to talk about where recent tech rallies could broaden out to the rest of the market (^DJI, ^IXIC, ^GSPC) amid the anticipation for the Federal Reserve to begin cutting interest rates.

She examines the outlook for tech earnings growth from the Magnificent Seven leaders.

"When we look at the market as a whole, it looks like it's trading at a very hefty premium. You take out the Mag Seven, you take out tech, valuations aren't as elevated compared to historical levels. So yes, tech, Mag Seven, you still see strong earnings growth," Inui tells Yahoo Finance. "There is this gap overall when you look at the rest of the of the sectors. But that's clearly reflected in terms of what we're seeing in in valuations."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.