J.P. Morgan Asset Management Global Market Strategist Jack Manley joins Market Domination to discuss market dynamics in the current rate environment.

Manley points to several critical factors currently influencing markets: indexes reaching all-time highs stretched valuations, and the beginning of earnings season. Ultimately, he emphasizes that "it has a lot to do with rates."

He explains that while markets have long anticipated cooling interest rates and monetary policy easing, reality paints a different picture: "Very clearly, we are learning week in and week out that this economy is doing a whole lot better than people give it credit for."

Regarding tech stocks facing pressure from elevated interest rates, Manley explains, "In general, higher rates are going to be harder for any company that is trying to finance a longer-term, more speculative bet." However, he points out an important distinction: the tech sector's recent outperformance wasn't broadly distributed across all technology companies but instead concentrated among the "Magnificent Seven" stocks.

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This post was written by Angel Smith