11AM Hour: President Trump on Iran War, Goldman Sachs Head of Multi-Sector Investing, Google’s Biggest AI Showcase of the Year 5/19/26

SPEAKER_1 (0:00)

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Robert Frank (0:30)

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SPEAKER_3 (0:43)

The NYSE SIPC.

Sara Eisen (0:51)

Good Tuesday morning again, welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla, live from Post 9 of the New York Stock Exchange. Today, US bond yields during their highest levels in decades will be joined by one top fixed income investor who says the yield move is creating an opportunity right now.

Carl Quintanilla (1:07)

With mortgage rates inching closer to that seven handle, we'll look at the impact on housing stocks as Toll Brothers gets set to report tonight after the bell.

Sara Eisen (1:14)

Plus CNBC out with its latest Disruptor 50 list, ranking the most promising venture-backed companies. We're joined by the CEO of No. 5, Corporate Expense Management Platform, RAMP.

Carl Quintanilla (1:24)

Once again, an interesting split market where S&P is kind of hanging in there, 73.5 even as yields do blow out. Ten year gets to 4.67.

The long bond at 5, almost 5.2 this morning. There's been a little nibbling in utilities and health care today. Vic's still sub 18 despite some of the turmoil in bond markets, all around the world, by the way.

Sara Eisen (1:45)

Right, exactly. It's not just a US phenomenon. Staples, real estate also a little bit higher, but tech is not bailing us out today for the market. Let's start there, focus on the chips, because we are seeing a pullback in several names to start the week. Christina Parchenevalos at the NASDAQ with more on these moves, Christina. I think we don't have, I'm having some microphone issues here on the show. I wasn't sure if that was just us, or if anyone can hear, or we'll work on getting her mic fixed up. But it's true, if you look at some of the action today, it's AMD, Broadcom, Intel, those are the big weights on the NASDAQ 100 Christina, I think we have you back with us.

Christina Parchenevalos (2:26)

Yes, do you?

Sara Eisen (2:27)

Sorry, go for it.

Christina Parchenevalos (2:29)

Oh, okay, awesome, okay. So I shouldn't be smiling, because some of the stocks are continuing their retreat today. Wall Street is really asking whether this is something bigger than it looks, but it's less like a fundamental breakdown and more like a positioning unwind, especially within the momentum names like Optical, which we'll get to in just a second. Hedge funds and retail investors have really piled into AI-related chip names in a big way. When that trade gets crowded, the unwind can be swift and painful. So let's start with some of the names, Intel, Teradon, Micron, AMD, all down roughly about 10 percent just over the last week or so. The Optical names that are often the leaders within the momentum trade, the hardest hit yesterday and again today. Lumentum down nearly 3 percent, Coherent, Applied Optical, Electronics, that one's down over 5 percent right now. NVIDIA too, not spared, looking at its third straight negative session followed by a seven-day rally. Some are saying this is a good buying opportunity given earnings are out tomorrow afternoon. And then historically, there's momentum on.

Sara Eisen (3:33)

All right, we lost Christina over at the NASDAQ, but you get the picture. Chips, it's an unwind, but they've been obviously the big winners over the last few weeks.

Carl Quintanilla (3:41)

Yeah, Goldman has a stat about their momentum basket down 11% over five days. That's the second worst five day stretch of the year, just to give you a sense of where we are in that momentum trade.

Sara Eisen (3:51)

Yeah, when this reverses, I mean, it's painful because they've gone up so much, and they have been carrying the market. The Sox, in the last week, in the last month, had its best month in years.

Carl Quintanilla (4:01)

For sure. For more on the market setup and the outlook for bonds, as this 30 year does hit its highest level in nearly 19 years, we're joined this morning at Post 9 by Lindsay Rosner, Goldman Sachs, Asset Management Head of Multi-Sector Fixed Income Investing. What a great day to have you in, Lindsay.