Rising Yields Threaten the Market: The Investment Committee's Strategy 8/18/26

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**Scott Wapner** (1:00)
I'm Scott Wapner and you're listening to CNBC's Halftime Report, the podcast, the most profitable hour of the trading day. We record this live weekdays at 12 Eastern. Listen in.
All right, guys, thanks so much. Welcome to the Halftime Report. I'm Scott Wapner. Front and center this hour, the backup in yields, what it means for the record-running stocks. Asdaq, Weaker, Growth Names are among the hardest hit today. Trading all of it with the Investment Committee. Joining me for the hour, Jason Snipe, Joe Terranova, Stephanie Linkburn, Talkington. Take you to the markets we, you probably know, right across the board. It is very much a yields story, backing up really everywhere, here, Germany, Japan. So we'll follow that. As Ed Yardeni says today, the bond vigilantes are stirring.
Fundstratz Mark Newton, he's the technician with Tom Lee, says the bond market's starting to show its hand and equities won't ignore it for long. Are these the early stages of the paying more attention to the backup in yields or no?

**Jason Snipe** (2:06)
No, I think it absolutely is, Scott. And I think for me, as I think about the yields story over the last couple of weeks and the acceleration there, you know, the story for me is we are, the 10 years approaching 5%.
And I think it's really a real rate story. Once the real rate yields are between 2% to 3%, I think that's where we start to see some disruption in the equity market because I think now there's a reasonable alternative to not take on risk and be in fixed income, especially for the baby boomers who, you know, we know there's a lot of them out here that are looking for opportunities like this. And I think it's an interesting place. And I think the other point I will make, China is no longer a buyer, right? Japan is, it's expensive. They're not buying right now. So that's why we're seeing some of the acceleration plus inflation expectations. Obviously what's going on with the conflict in Iran, you know, that story I think plays a role. So, you know, it's a time to kind of reflect on this, but I think that is the story. It's really about the real race.

**Scott Wapner** (3:08)
Yeah, that's the story right there, the 30 year, right?
Look at that move that we've had recently. It's the speed in which the 30 year yield has continued to extend the highs that it hadn't seen since 7 So it's been a minute since it's happened. Why are yields rising? Do you have to ask that question to decide, Joe, whether it's going to have a broader impact on the stock market? Because you could find a number of reasons that people keep pointing to debt and deficit, the incredible amount of issuance that is coming on the market from the likes of the hyperscalers, obviously, as they look to build out their AI infrastructure. The price to be paid, perhaps, as Steve Leesman has framed it for a lack of communication, if you will, from the Fed. So it's a confluence of events that have led to this backup in yields. As we said, it's not just a US story, but it needs to be focused on perhaps a little bit more. The market kind of wants to. Ed Yardeni says the bond vigilantes are. What do you think?

**Joe Terranova** (4:08)
Well, I think you listed some reasoning, which is fair. I think you want to add upon that, that the demographics of the investor base has changed. I think you have an investor base, a generation now that's grown up on equities and is less inclined to purchase bonds even when they recognize the value. You asked the question yesterday, Scott. You asked me sitting on this desk, you asked others on Closing Bell. When will rising yields matter?