Yahoo TV

As the second quarter earnings season kicks off with major banks leading the charge, Brandywine Global portfolio manager John McClain joins Wealth! to share his market insights.

McClain anticipates "reasonably strong earnings" from the big banks and hopes for "nothing too scary." Regarding consumer trends, he expects bank earnings to reveal "a trend of a bifurcated market," with high-end consumers faring well while low-end consumers continue to struggle under "the pinch of inflation."

However, McClain emphasizes that current market dynamics extend far beyond bank earnings. He notes, "Everybody's really waiting for the election coming up, so I think that we're not too particularly worried about what the banks are going to say and the reaction function at this time."

With AI leading much of earnings and market gains thus far, McClain struggles to see how much momentum can be sustained. He expects big AI names like Nvidia (NVDA) to deliver "underwhelming" reports this season.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This article was written by Angel Smith