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The AI Tech Surge and the Tale of Two Markets · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast , your regular checkin on everything moving the markets .
• 0:07
  I am your host , Barnaby Bullmarket , and I am so glad you could join me today .
• 0:11
  It is currently 2:30 pm on Monday , June 1st , 2026 , here in sunny Pacific time .
• 0:19
  We are looking at a very interesting day on Wall Street , so let's dive right into the numbers .
• 0:24
  We are seeing what I like to call a tale of two markets .
• 0:28
  On one hand , we are hitting incredible record highs .
• 0:31
  The S&P 500 , which we track through the SPY ETF , actually topped the 7,600 mark for the first time today before settling around 7,580 .
• 0:43
  The Dow is sitting pretty above 51,000 , and the Nasdaq100 , or the QQQ , is knocking on the door of 27,000 .
• 0:52
  It sounds like a party , right ?
• 0:54
  Well , it is if you are in Tech .
• 0:57
  The Technology Select Sector , known as XLK , gained nearly two percent today .
• 1:02
  This is all thanks to some massive news in the world of Artificial Intelligence .
• 1:07
  Jensen Huang , the CEO of Nvidia , just unveiled their new Vera Rubin AI platform , sending their stock up almost four percent .
• 1:17
  Not to be outdone , Dell Technologies reported some absolutely stellar earnings , with their AI server backlog hitting over twentyfour billion dollars .
• 1:27
  Even IBM got in on the action , gaining over five percent after landing a billiondollar government grant for quantum computing .
• 1:35
  But it is not all sunshine and rainbows .
• 1:38
  While tech is soaring , our Consumer Staples sector , the XLP , dropped two percent today .
• 1:44
  Why ?
• 1:45
  Well , things are getting a bit pricey and tense globally .
• 1:49
  Oil prices have surged to nearly ninety dollars a barrel due to tensions between the U.S.
• 1:54
  and Iran .
• 1:56
  Even though there is a ceasefire , folks are nervous , and that is hitting the companies that make our everyday household goods .
• 2:03
  Now , let’s look under the hood for some analysis .
• 2:06
  This market rally is actually quite narrow .
• 2:09
  Only about thirtynine percent of stocks in the S&P 500 are actually advancing .
• 2:15
  That means a few big tech giants are doing the heavy lifting while others struggle .
• 2:20
  We also have to keep an eye on inflation .
• 2:23
  Our recent reports show inflation is still a bit stubborn at 3.8 percent .
• 2:28
  Everyone is waiting for the midJune meeting with our new Fed Chairman , Kevin Warsh .
• 2:34
  Most people think he will keep interest rates right where they are , but his hawkish tone has people being cautious .
• 2:40
  So , what should we do with our hardearned money ?
• 2:44
  I’m looking at a strategy of aggressive growth mixed with some smart hedges .
• 2:49
  First , for growth , it is hard to ignore the momentum in the Tech Select Sector SPDR , or XLK .
• 2:56
  With companies like Nvidia and Dell showing such massive demand for AI infrastructure , that sector is the place to be for capital appreciation .
• 3:06
  However , because things are a bit shaky globally , I recommend a little insurance .
• 3:12
  Keeping about five to ten percent of your portfolio in Gold through the GLD ETF is a great way to protect yourself against energy price spikes or geopolitical surprises .
• 3:23
  I also like the Healthcare sector , or XLV , for some stability .
• 3:28
  It is much cheaper than tech right now and tends to hold up better if people stop spending as much at the mall .
• 3:35
  On the bond side , I would be careful with the longterm stuff .
• 3:39
  I’d avoid the TLT ETF for now because higher interest rates make those longterm bonds lose value .
• 3:46
  Instead , look at the shortterm 13 Year Treasury Bond ETF , symbol SHY , to get a decent yield with much less risk .
• 3:54
  Finally , keep your eyes peeled for June 12th .
• 3:58
  There is a lot of buzz about a SpaceX IPO under the ticker SPCX .
• 4:02
  If that happens at a twotrilliondollar valuation , it could move a lot of money around the market .
• 4:09
  I’d suggest keeping some cash in a safe spot like the Vanguard Federal Money Market Fund , or VMFXX , so you are ready to jump on any opportunities that come up if the market gets a little rocky after that big debut .
• 4:22
  That’s all for this afternoon's update !
• 4:25
  Thanks for tuning in to Spy Trader .
• 4:27
  I’m Barnaby Bullmarket , reminding you to keep an eye on the charts and a hand on your coffee .
• 4:33
  See you next time !