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Consumer stock rally to continue: Expert

The U.S. consumer could carry investors to big gains the rest of this year, one expert said Tuesday.

Both the S&P 500 consumer discretionary and consumer staples sectors have easily beaten the broader index this year. The strength should continue as the holiday season approaches, said Jeff Kilburg, founder and CEO of KKM Financial.

"I think the consumer continues to see momentum," he told CNBC's "Power Lunch."

A pedestrian carries shopping bags while walking on Fifth Avenue in New York.
John Taggart | Bloomberg | Getty Images
A pedestrian carries shopping bags while walking on Fifth Avenue in New York.

Still, concerns have grown that stagnant wages, among other headwinds, will weigh on consumer spending. Retail sales rose only 0.1 percent in September.

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But Kilburg contends U.S. consumers will spend more freely for the rest of the year. He believes those trends will benefit tech firms, as well.

He pointed to possible upside for the Technology Select Sector SPDR Fund, which has top holdings Apple, Microsoft, Facebook, AT&T and Google holding company Alphabet. The fund has beaten the S&P 500 so far this year.