STORY: It was another banner day for the S&P 500 and the Nasdaq Wednesday with both indexes notching record closing highs for the third straight day.

The latest inflation data showed consumer prices in May were softer than expected and the Federal Reserve, at the conclusion of its latest two-day policy meeting, held interest rates steady.

But the U.S. central bank projected only one interest rate cut this year - down from its previous prediction of three - which led the major indexes to come down off their session highs.

The Dow actually closed down one tenth of one percent while the S&P rose about nine tenths and the tech-heavy Nasdaq added one-point-five percent.

Helping to power the market: Apple, which rose nearly three percent after announcing AI additions to its iPhones earlier this week. The company's market cap actually passed Microsoft's, helping it reclaim its post as the most valuable company in the world.

The continued market dominance of megacap tech companies is concerning, says Wealth Alliance President and Managing Director Eric Diton.

"Three stocks are now 20% of the S&P. Has that ever happened? No. That is as lopsided as we've been, and we know who they are. We know the offenders Microsoft, Nvidia, Apple."


"This is very much a two-tiered market. It's a narrow market, advanced declines going the wrong way, new highs and new lows going the wrong way. I don't even want to talk to you about small cap stocks -4% a year for last three years. So it's these big tech stocks. That are carrying the day. How high do they go? No one knows."

Shares of Microsoft rose nearly two percent, and AI chip leader Nvidia rose more than three-and-a-half percent.

And Oracle surged 13% after it forecast strong revenue growth above estimates.