STORY: :: Lisa Bernhard, Reuters

:: Eric Diton, President and Managing Director, The Wealth Alliance

Diton called the Fed's retreat from its prior prediction of three rate cuts this year not surprising.

"The economy's been too strong" he said, noting some investors were actually projecting no rate cuts. "So they'll take the one."

Speaking with Reuters' Lisa Bernhard, Diton also pointed out that while higher rates increase borrowing costs, they also "bring higher interest income. And $3.7 trillion has been earned in interest in dividends in the first quarter of 2024. That number four years ago was $770 billion. $770 billion to 3.7 trillion - that's a lot of money to spend, a lot of money in people's pockets."

As for stocks, Diton discussed the continued dominance of megacap tech companies, which, fueled by developments in artificial intelligence, appears to have no end in sight.

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