The three largest U.S. equities have been the year's top winners, posting double-digit increases and boosting the market as a whole.

The biggest tech stocks have risen this year as a result of expectations among investors that the Fed will stop raising interest rates in the near future.

That includes companies like Apple AAPL, which is worth $2.6 trillion on the stock market, Microsoft MSFT, which is worth $2.2 trillion, and Alphabet, the parent company of Google, GOOGL, which is worth $1.4 trillion.

Since these equities are frequently affected by changes in interest rates, the growing consensus that the Federal Reserve will lower rates in the second part of this year has supported the group.

These mega-cap names just had a significant reversal from 2022, when the same equities were brutally hit during the quickest interest rate hike cycle in decades, sending the rest of the market into a bear market.

Compared to the previous time the Fed cut interest rates, inflation is much greater this time.

The Fed will find it very challenging to reduce interest rates down to zero.

Growth businesses can still succeed in this setting, but not growth that is heavily speculative.

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