Will be difficult for market to clock gains from Monday's levels, says BofA Securities' Subramanian

Watch on YouTube ↗  |  June 15, 2026 at 19:28  |  5:29  |  CNBC
Speakers
Savita Subramanian — Head of US Equity & Quantitative Strategy, Bank of America

Summary

Savita Subramanian of BofA Securities explains why she is cautious on the S&P 500 despite strong earnings, pointing to priced-in good news, multiple compression in tech, worsening equity supply-demand, and declining liquidity. She recommends buying the Russell Large Cap Value Index for income and value exposure and likes cyclical companies tied to a strong economy.

  • S&P 500 index may struggle to clock further gains from current levels.
  • Good news is priced in; strong earnings years are not always the best return years.
  • Technology sector seeing multiple compression and slowing buybacks.
  • Equity liquidity is declining from peak 2024 levels.
  • Russell Large Cap Value Index preferred for income/value areas.
  • Cyclical companies favored given robust economy; energy and financials could surprise positively.
  • Earnings surprise potential is limited due to already elevated long-term growth forecasts.
Ideas
Savita Subramanian Head of US Equity & Quantitative Strategy, Bank of America 0:46
Buy Russell Large Cap Value Index
If forced to buy one index today, she would buy the Russell Large Cap Value Index because it captures income-oriented value areas of the market that are throwing off capital rather than consuming it, while the broader index faces headwinds from overly optimistic earnings expectations, multiple compression in tech, worsening supply-demand dynamics, and declining liquidity.
Russell Large Cap Value Index HIGH
Savita Subramanian Head of US Equity & Quantitative Strategy, Bank of America 0:53
S&P 500 gains will be difficult
The S&P 500 is unlikely to clock significant further gains from current levels because good news is already priced in, years with strong earnings and GDP growth are not the best for equity returns, multiple compression is beginning in tech, supply-demand dynamics are worsening, and the liquidity spigot is gradually being turned off.
SPY MED
Savita Subramanian Head of US Equity & Quantitative Strategy, Bank of America 1:11
Tech faces multiple compression headwinds
Technology is facing multiple compression, changing supply-demand dynamics, and a demonstrable slowdown in buybacks within the hyperscaler space, making the sector unattractive at the index level.
XLK MED
Savita Subramanian Head of US Equity & Quantitative Strategy, Bank of America 5:24
Favor cyclical companies tied to economy
The economy is doing great, and she likes cyclical companies that are tethered to that strength, with potential positive surprises in areas like energy holding up better post-ceasefire and financials enjoying lending growth.
Cyclical companies LOW
Up Next
4:28
Dan Niles: Market strength is getting back to where AI capex is being spent, not the spenders
CNBC · Jun 15
3:08
SpaceX investor Peter Diamandis on criticism of Musk's trillionaire status: He's not driven by money
CNBC · Jun 15
2:45:58
LIVE: War Is ACTUALLY OVER!!!! Stocks ATH Again!? SpaceX Is UNREAL!!!!! Anthropic Is BANNED...OMGGG!
Thread Guy · Jun 15
35:02
Three Bullish Signals Just Hit At Once… Is the Bull Run Back On? w/ John Gillen
Milk Road Macro · Jun 15
0:33
The Problem Every Company Holding Bitcoin Will Face
The Block · Jun 15

This CNBC video, published June 15, 2026, features Savita Subramanian discussing Russell Large Cap Value Index, SPY, XLK, Cyclical companies. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Savita Subramanian  · Tickers: Russell Large Cap Value Index, SPY, XLK, Cyclical companies