The tech-heavy Nasdaq (^IXIC) and S&P 500 (^GSPC) are rallying this trading week, shaking off any volatility (^VIX) scares that appeared at the beginning of September. While tech stocks lead the charge within the indexes, what are some undervalued areas investors should consider?

J.P. Morgan Asset Management global market strategist Stephanie Aliaga sits down with Seana Smith and Brad Smith on The Morning Brief to talk about where investors should be looking as the market fares through choppiness and broadening earnings growth.

"The focus really has to be on quality... we traditionally think of [tech] as perhaps a riskier sector of the markets and the current market environment. You have a lot of these tech names, have a lot of cash on hand, and they're using that to invest in future growth opportunities in R&D and CapEx," Aliaga explains. "But it's not only tech that actually has healthy cash balances, it's other areas of growth markets, consumer discretionary, consumer services, also healthcare, real estate."

Ahead of the Federal Reserve's September policy meeting, Aliaga underlines the fact that officials need to be confident in their decision to cut rates and reference their success in easing inflation.

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

This post was written by Luke Carberry Mogan.