Name: Our expectation is the Fed will hike next week, says Neuberger's Holly Newman Kroft
Uploaded: 2026-09-11T15:56:01+00:00
Duration: 280 s

Speakers

Holly Newman Kroft — Managing Director and Senior Wealth Advisor, Neuberger

Summary

Holly Newman Kroft of Neuberger discusses how markets are reacting to the latest CPI print and her expectation that the Fed will hike next week. She remains constructive on U.S. and global equities, favors high-quality small caps and emerging markets over Europe, and warns that volatility is likely to rise into year-end.

Holly Newman Kroft expects the Fed to hike next week and sees oil above $100 and the 10-year yield crossing 5% as critical inflation inflection points.
She says the stock market can hold up, supported by strong Q2 and Q1 earnings, upward analyst revisions, robust AI spending, and solid corporate balance sheets.
She expects volatility to pick up dramatically due to the Iran war, midterm elections, and the likely Fed hike.
She is constructive on a global diversified equity portfolio and overweight high-quality small caps because levered small caps face higher interest expense.
She likes emerging markets, China, Taiwan, and Korea where the AI trade has not played out as much as in the U.S.
She is underweight international developed equities, specifically Europe.

Ideas

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 0:29

Fed to hike; inflation inflection points.

She expects the Fed to hike next week, saying CPI would have had to surprise positively to change course. She points to the ECB's recent hikes, the prolonged Iran conflict, oil topping $100, and the 10-year Treasury yield crossing 5% as critical inflation inflection points that the Fed is weighing.

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 1:34

U.S. stocks have room to run.

She believes the stock market can and will hold up despite a Fed hike because today's move is a relief rally after a not-terrible CPI, Q2 and Q1 earnings surprised significantly to the upside, analysts are revising next year's earnings upward, AI spending remains robust, corporate balance sheets are strong, and the market has proven able to withstand higher-for-longer inflation. She still sees room to run.

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 2:51

Volatility to rise dramatically into year-end.

She expects volatility to pick up dramatically as the market enters the fourth quarter and moves toward year-end, citing the war in Iran, midterm elections, and an almost-certain Fed hike next week.

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 3:58

Constructive on global diversified equities.

She is constructive on a globally diversified equity portfolio, with regional and market-cap tilts: overweight small caps and emerging markets, and underweight international developed/Europe.

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 4:02

Favor high-quality small caps over levered.

She is overweight small caps, but specifically high-quality small caps, because small caps can be highly levered and weak balance sheets with a lot of debt will face higher interest expense as the Fed hikes.

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 4:20

Like emerging markets, China, Taiwan, Korea.

She continues to like emerging markets where the AI trade has not played out as much as in the United States, and sees opportunities in China, Taiwan, and Korea.

Holly Newman Kroft Managing Director and Senior Wealth Advisor, Neuberger 4:32

Underweight international developed, especially Europe.

She says they pulled back and are a little underweight international developed equities, specifically Europe; the transcript cuts off the rationale.

This CNBC video, published September 11, 2026, features Holly Newman Kroft discussing 10-Year Treasury Yield, WTI, SPY, VOLATILITY, Global diversified equities, High-quality small caps, EEM, FXI, EWT, EWY, International developed equities, VGK. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Holly Newman Kroft · Tickers: 10-Year Treasury Yield, WTI, SPY, VOLATILITY, Global diversified equities, High-quality small caps, EEM, FXI, EWT, EWY, International developed equities, VGK

Our expectation is the Fed will hike next week, says Neuberger's Holly Newman Kroft

Summary

Ideas

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