Nvidia (NVDA) has been on a downturn, with a three-day losing streak. As a result, the S&P 500 (^GSPC) also began to slump as Nvidia holds considerable weight in the index.

Stifel chief equity strategist Barry Bannister joins Morning Brief to give insight into Nvidia's recent performance, its weight on the S&P 500, and what investors need to consider for the broader market moving forward.

"The market's expensive. If you look at the way we calculate equity risk premium, the earnings yield above the risk-free yield on offer; it's at about two and a half. We think it should be about three. So, the S&P is a good 10% above where it should be. There are a lot of other ways to value the market and look at equity ownership as a percent of households financial assets. These are at record highs. These are at enormous levels. So we're concerned about future returns being lowered by the high level of today." Bannister tells Yahoo Finance.

He continues by estimating where the market is headed: "We don't see any Fed rate cuts this year, and as a consequence, the market can pull back, and that's been our call...I wouldn't feel disappointed if it fell 10% to about 4900. We've been saying 4750."

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This post was written by Nicholas Jacobino