The US major averages (^DJI, ^IXIC, ^GSPC) start Monday's trading session mixed as the S&P 500 and Nasdaq Composite hold near their record highs achieved last week.

The Morning Brief's Seana Smith and Madison Mills monitor market movements after the opening bell, while Jared Blikre breaks down long-term trends in the S&P Equal Weight Index (^SPXEW).

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.

Video Transcript

Welcome back to the morning brief on Yahoo Finance.

You are taking a look at futures right now, Dow and SB under a bit of pressure.

But remember last week it was a record setting week here for the markets.

Lots of optimism about the latest readings that we got on inflation.

What exactly that could mean for the feds.

Next, move for cutting rates here as we kick off a new trading week here on Wall Street, a shortened holiday trading week.

Again, you're seeing that excitement play out the NASDAQ and the New York Stock Exchange here, Matty.

But as we take a look at the major averages, we are looking at a bit of a mixed picture here.

At the at least, you've got the Dow off just about 3/10 of a percent.

You also have the S and P off about 1/10 of a percent here but again well above that 5400 level, all above that record high, too.

But it's interesting to look at the amount of pressure on the S and P Equal weighted index down 7/10 of a percent even more than the broader that is telling to us about the narrowness, the concentration of this rally, the tech rally and the market cap weighted S and P potentially holding that index up just a little bit.

But our very own Jared Bli.

He's standing by with a little bit more on the market action today.

Jared, what are you watching?

Well, thank you, Mattie, Since we're already talking about the S and P 500 equal weight, I'm just going to begin there because there's a lot of talk about market concentration.

And indeed, we have seen the mega caps and especially NVIDIA and the chip stocks lead this rally higher, and a lot of other stocks and sectors have been left behind.

But here is a three year chart of the S and P 500 equal weight and what we can see here, it's still holding what was prior resistance.

And so, just on a technical level, I am not concerned about this market.

Unless 6500 goes in the equal weight at S and P 500 Index.

Now I just want to talk about some divergences that have been building up in the market.

Here is the NASDAQ versus the Dow over the last month and pretty striking, you can see the NASDAQ is up 6% while the Dow is down 4% and on a year to date chart, you can see both are positive, but the NASDAQ has really just had a much better year of it.

And so, the argument goes, Are we in a situation where breadth is deteriorating and leaving too much of the market behind?

Uh, I go back to the S and P 500 equal weight.

I don't think we're there just yet.

We can also take a look at the S and P 500.

Those two markets equal weight versus market cap, and it's a very similar story.

Uh, I'm going to just kind of skip over bonds and the dollar, by the way, those are up a little bit today, and so that could be weighing on certain parts of the risk market.

But here's a sector action, and what you will notice is there's only one sector in the green that is XL K, up about one third of a percent utilities in real estate leading to the downside, those are interest rate sensitive and sectors, and as we do have, uh we do have interest rates heading up today, so that makes, uh, a lot of sense confirmation there.

Wanna close here with semiconductors, NVIDIA and Broadcom?

At record highs, you can see Broadcom up about 3%.

So is Taiwan semi and really, the chip sector as a whole has just been on fire recently.

And so I guess the question now is how long does it take for the rest of the market to catch up or catch down?