Consumers are not what will hold market rally back, says PNC's Yung-Yu Ma

Watch on YouTube ↗  |  August 14, 2026 at 21:18  |  5:20  |  CNBC
Speakers
Yung-Yu Ma — Chief Investment Strategist, PNC Asset Management
Ed Clissold — Chief U.S. Strategist, Ned Davis Research
Max Kettner — Chief Multi-Asset Strategist, HSBC

Summary

The panel discusses whether the S&P 500 rally can continue. Yung-Yu Ma argues consumers are not the main risk, while rising long-term rates from heavy Treasury and corporate debt supply are the bigger headwind. Ed Clissold sees long-term AI and data-center electrification demand intact but warns of a possible broad equity pullback by the end of Q3. Max Kettner favors non-US tech, especially Asia, and within Europe likes equities broadly, banks, and industrials.

  • Panel debates whether the record S&P 500 rally can continue for a third week.
  • Yung-Yu Ma says healthy restaurant spending, card data, and wealth effects mean consumers will not hold back the rally.
  • Ma sees long-term rates as the main risk due to Treasury and corporate debt supply plus elevated oil prices.
  • Ed Clissold says the long-term AI/data-center power theme has multiyear runway but near-term capex digestion may hit equities.
  • Clissold warns of a possible broader equity pullback between now and the end of Q3.
  • Max Kettner sees an opportunity for non-US tech exposure, particularly in Asian equities.
  • Kettner also favors European banks and European industrials/capital goods for the broadening rally.
Ideas
Yung-Yu Ma Chief Investment Strategist, PNC Asset Management 0:47
Consumers won't derail the equity rally.
The long end of the yield curve is now more in play, and a 10-year Treasury yield approaching 5% could be a real challenge for equities. Between now and the end of the third quarter, concerns about AI capex pace and costs could cause a pullback in the broader equity market, especially because markets are more Fed-sensitive than in prior years.
SPY HIGH
Yung-Yu Ma Chief Investment Strategist, PNC Asset Management 1:04
Long-term rates may rise on heavy supply.
The bigger risk to markets is long-term interest rates rising. Fed watching is not the main driver for long-term rates; supply and demand is. Heavy U.S. Treasury supply plus record-breaking corporate debt issuance could eventually strain deep capital markets and push longer-term rates higher, especially with oil prices elevated.
U.S. long-term Treasury yields HIGH
Ed Clissold Chief U.S. Strategist, Ned Davis Research 2:55
AI infrastructure theme still has years.
The long-term AI play, including data center electrification and power, still has years to run, even though near-term concerns about the pace and cost of capex investment could create volatility.
Data center electrification and power MED
Max Kettner Chief Multi-Asset Strategist, HSBC 3:41
Buy non-US tech, especially Asia.
The June/July clearing of momentum positions, tech positions, and excess leverage should pave the way for more tech exposure outside the U.S., particularly leaning back into the Asian equity universe.
Non-US tech AAXJ MED
Max Kettner Chief Multi-Asset Strategist, HSBC 3:59
Europe plays equity rally broadening.
European equities are an expression to broaden the rally and play a broadening of the equity market; Europe has tracked the equal-weighted S&P for much of the past two and a half years.
VGK MED
Max Kettner Chief Multi-Asset Strategist, HSBC 4:10
European banks look great value.
Within European equities, banks still look fantastic on earnings and earnings revisions, and any sign of a steepening Bund yield curve should help European banks. Banks look great value.
EUFN HIGH
Max Kettner Chief Multi-Asset Strategist, HSBC 4:54
European industrials benefit from broadening capex.
European capital goods and industrials are a pretty good complex because the manufacturing cycle is picking up and broadening away from AI capex toward broader capex.
EXI European industrials MED
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This CNBC video, published August 14, 2026, features Yung-Yu Ma, Ed Clissold, Max Kettner discussing SPY, U.S. long-term Treasury yields, Data center electrification and power, Non-US tech, AAXJ, VGK, EUFN, EXI, European industrials. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Yung-Yu Ma, Ed Clissold, Max Kettner  · Tickers: SPY, U.S. long-term Treasury yields, Data center electrification and power, Non-US tech, AAXJ, VGK, EUFN, EXI, European industrials