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The Nasdaq, I guess pretty much unchanged here this morning. Slightly to the downside. Coming off its worst two day slump that we've seen since October of 2023. We've seen this rotation out of larger cap tech names, those that have been leading the rally over the last several months and into names that haven't necessarily participated here. All of this being driven by hopes at Fed rate cuts. So here to discuss what exactly that means and what we could expect going forward, we want to bring in Ryan Dietrich. He's Carson groups chief market strategist. Ryan, it's great to talk to you. So first, let's just get your reaction to what has played out here over the last couple of trading days. Certainly, we have seen this rotation out of those larger cap tech names. Is that a trade that you think is here to stay?

Well, first off, thanks for having me. And I agree. We should all be eating ice cream right now to celebrate National Ice Cream Day. I can't believe we missed that memo. We have to yell at somebody. Thank you. Yeah. And nice Naughty by Nature reference earlier Brad. I got that. I got that. Anyways, let's get into it here. So I came on with you guys three weeks ago. I was in person in New York and we talked about the idea, the second half of this year, inflation should get better. We're probably going to see some rate cuts. People didn't really believe that three, four weeks ago necessarily. Now we've got the better inflation data with the CPI and honestly, the PCE. You put all this together, do we expect small caps to do this, right? The past week and a half? No. But to see some, you know, flows out of large cap tech and into the smaller names, into some cyclicals, that is absolutely how we've expected it. A week ago, week and a half ago, we released our mid-year outlook at Carson Group, and we wrote that. We said that. Like the day after it came out, the Russell 2000 went up 1%, five days in a row. Kind of random. But nonetheless, um you know, I don't think this is shocking. I I think we expected this type of move. And honestly, guys, we think this is going to continue. Doesn't mean we hate tech. We're more neutral tech. But we really think these other underloved, underappreciated, underowned areas are probably going to be pretty good the second half of this year.

Ryan, you know, I and forgive me, I mean, I was out in in Orville, Ohio, the Mecca of spreads, jams, jellies and uncrustables for the past couple days. But I did see a notification come across on my phone about the levels to which we were seeing slippage and Nvidia, which was what a lot of people was tracking, we're tracking is part of this broader tech slippage. And we're essentially now back to some levels where insiders after insiders were, you know, doing some profit taking. We're we're back to some of those markers. Is there more slippage ahead that you believe? And and if so, where does that rotation then go into from some of that profit taking?

Yeah. No, great question there. We do think there could be a little more slippage. I mean, Nvidia, I can't really give recommendations on individual stocks, but we know these these large companies are making a lot of money. So this is not a 1999, 2000 moment in our opinion. At the same time, when you see the fact that, listen, I think it's like 2.7 cuts are expected from the Fed, we think it's more like three. We think inflation's going to keep getting better. What does that mean? Well, if yields go a little bit lower, we know that it's all about the debt financing when it comes to small caps because large caps have a lot of that debt financed. So keep this simple. Yields go lower, Fed cuts, we still think small caps, mid-caps, but also, we like industrials and financials here. And financials been a little rocky. Some of those broker dealers had some rough news lately. But still, we think financials and overall industrials is we don't have a recession. Just look at this week, right? Just this week, um while you're eating good jelly. I'm from Ohio, so I know all about the jelly in Ohio there. But when you think about it just this week, what have we seen? Retail sales came in better than expected. The control group, without getting too in the weeds here, was really, really solid. Then industrial production saying, listen, manufacturing is doing just fine also. So we do not see a recession. We see those rate cuts, industrials, financials, small and mid-caps are some areas we're overweight in the money that we run for our Carson partners.