How investors can manage portfolios as interest rates rise

Watch on YouTube ↗  |  May 18, 2026 at 17:57  |  10:52  |  CNBC
Speakers
Joe Terranova — Senior Managing Director, Virtus Investment Partners
Steve Weiss — Chief Investment Officer, Short Hills Capital Partners

Summary

The CNBC Halftime Report Investment Committee discusses portfolio management amid rising interest rates. Key themes include the challenge to the momentum factor, bullish oil outlook due to blockade, expectations of a 5-10% market correction, and a larger correction in the AI trade. The committee also notes resilient economic growth and broadening earnings.

  • Rising rates challenge the momentum factor as the driving force.
  • Oil prices expected to rise with continued blockade.
  • Bond vigilantes and deficit concerns could cause a 5-10% correction.
  • AI trade is vulnerable to a larger pullback.
  • Economic underpinnings remain strong with manufacturing re-acceleration.
  • Market narrowness persists, with only 44% of stocks above 50-day.
  • Earnings season positive, with retail earnings awaited.
  • Fed hike speculation not broadly believed; no cuts needed.
Trade Ideas
Joe Terranova Senior Managing Director, Virtus Investment Partners 2:22
Momentum factor most at risk.
Rising rates pose a challenge to the momentum factor, which has been the driving force in the market, and it is most at risk.
MTUM HIGH
Steve Weiss Chief Investment Officer, Short Hills Capital Partners 8:33
Oil prices to rise with blockade.
Oil prices are at a lull and will go higher as long as the blockade remains in place.
USO MED
Steve Weiss Chief Investment Officer, Short Hills Capital Partners 9:46
Broad market correction expected.
Due to bond vigilantes focusing on the deficit and no off ramp for rates, a 5-10% correction in the broad market is likely.
SPY MED
Steve Weiss Chief Investment Officer, Short Hills Capital Partners 10:50
AI trade due for larger correction.
The AI trade will experience a much bigger correction than the broad market.
AI stocks (sector) MED
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This CNBC video, published May 18, 2026, features Joe Terranova, Steve Weiss discussing MTUM, USO, SPY, AI stocks (sector). 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Joe Terranova, Steve Weiss  · Tickers: MTUM, USO, SPY, AI stocks (sector)