Wall Street traders are all in agreement that the stock market indices (^DJI, ^IXIC, ^GSPC) are ripping higher Thursday morning. Yahoo Finance's Madison Mills is joined by Freedom Capital Markets Chief Global Strategist Jay Woods on the floor of the New York Stock Exchange to comment on the upside reeling from tech sell-offs.

Healthcare, industrials, materials, those are doing well, despite some of the Mag 7 — three in particular, Tesla (TSLA), Apple (AAPL), and Google (GOOG, GOOGL) — down for the year," Woods states. That usually scares this market, it's not. So something's changed and it's a good narrative."

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

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

[BELL RINGING]

- There it is. We did it again. That's the opening bell on Wall Street and at the NASDAQ in Midtown Manhattan where they've got some funfetti because it's a day that ends in Y, Pentair ringing the opening bell at the NYSE, ticker symbol PNT. And in Midtown Manhattan you've got we're going to go with Energem.

- OK. I like that pronunciation.

- You like that one?

- Yeah.

- OK. All right, we'll stick with that one for now. We'll workshop it a little bit here in the break. We've got team coverage of the biggest market movers following the opening bell on Wall Street standing by at the New York Stock Exchange. We've got Jay Woods alongside Madison Mills and Jared Blikre, who is here at the Wi-Fi interactive on standby,

Madison, just 30 minutes before Fed Chair Jay Powell's second day of congressional testimony kicks off, what are you hearing around the exchange?

- Well, Brad, I'm here with Jay Woods, who I'd love to get that quote of what you just said. What did you say when you just turned to the boards?

- I said, we're ripping.

- What's going on?

- Hey, did I curse? If I did, I don't want to quote that. What's going on-- we're having a nice day here. Remember Monday and Tuesday when we sold off? This is the third time we've had close to a 2% selloff from the top of the S&P 500. We haven't had a 2% selloff in now, I believe, 90 days, where there have only been six streaks longer, which is quite impressive.

And every time you think we're going to give a little bit back, the buyers step in and we're stepping in again despite Powell's testimony where we're going to be a little higher for longer. So this market's resilient and, yeah, it's pretty amazing to see.

- So we had the selloff, and then we have this catalyst for growth. What is driving this growth that we're still seeing off of that selloff?

- Well, we're seeing a rotation. We had a good earnings season. We got through that. We still have a few coming out later today, but 99% are done. So let's say we're done.

And now, we're waiting for that next catalyst. What's that going to be? I think it's going to be the CPI next week, unemployment tomorrow. But right now, despite inflation still being a little sticky and higher for longer, the market is resilient, and the broadening out, we're seeing the Russell still continue to do well.

Health care, industrials, materials, those are doing well, despite some of the Mag Seven, three of them in particular-- Tesla, Apple, and Google-- down for the year. Tesla down over 20%, Apple down over 10%. That usually scares this market. It's not, so something's changed, and it's a good narrative.

- If you're an investor who has those three names that you mentioned and maybe even I would throw in a Microsoft-- they're kind of surviving, but I feel like they're not thriving the way the other top three in the seven are-- what's your advice to them? What should they be thinking about and framing their thinking on? Should they be panicking right now?

- Well, if that's their only stock holding, yeah, I'd be a little nervous because you're missing out on the rest of the rally. But, I mean, Apple has proven time and time again that any pause, any stop in their uptrend is probably a good buying opportunity.

Tesla a little different. Google, they have some AI concerns, but Google has always figured it out as well. So what it is just a rotation, and people are going to different asset classes, whether it's Bitcoin and gold-- which are making all-time highs. It's crazy-- or some of the other smaller stocks that have not participated yet in the rally.

And then you have AI. It just doesn't slow down. NVIDIA over 900 this morning. Crazy.

- When you look at AI plays, I was just talking about Micron Technology, what should investors be looking at in terms of the fundamentals, the balance sheet on these companies to suss out where they can afford to play AI if they can't get in on NVIDIA?

- Yeah, well, I mean, you can buy the SMH, the Semiconductor Index, that's a best way to have a basket of stocks that are all AI related. NVIDIA definitely the best in class. Who's the next one up? We have Broadcom earnings after the close today. It's going to be interesting to see what they do.

NVIDIA was up 260% coming into this week over 52 weeks. You know, Broadcom symbol AVGO was up 135%, so you do have stocks that are making tremendous runs in AI, but NVIDIA just outshines everybody. It's best in class, and it's best in class for a reason. They keep raising the bar.

The AI story, as Dan Ives always says-- I know he's been on your network and talked to you guys in the studio-- it's still early innings, and I believe Dan Ives. And you just have to be selective. If you want to get in, buy a basket. It's the best way to play it.

- All right. Buy that basket. Thank you so much, Jay. We really appreciate you. As always, Brad and Seana, I'll toss it back to you guys in the studio.

- All right. Thanks so much, Maddy, and thanks, Jay, for telling us how to play the movement that we're seeing to the upside. Buy the basket.