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Labor Day Market Outlook: Rates vs. Tech · The SPY Trader

• 0:00
  Good morning and a very happy Sunday to you all !
• 0:03
  Welcome to Spy Trader , your goto guide for navigating the twists and turns of the stock market .
• 0:09
  I am your host , Sunny Sideup , and it is currently 6 am on Sunday , September 6th , 2026 , here in the Pacific time zone .
• 0:19
  While many of you might be planning a Labor Day barbecue for tomorrow , the markets never really sleep , and we have a very busy holidayshortened week ahead of us .
• 0:28
  We are entering the second week of September , a month historically known as the weakest for stocks , and this year is certainly living up to that reputation .
• 0:38
  We are seeing a bit of a tugofwar between hightech excitement and the reality of rising interest rates .
• 0:44
  Let us dive into what happened recently and what you should watch for when the opening bell rings on Tuesday morning .
• 0:51
  The big story coming out of Friday was the jobs report .
• 0:56
  The economy added 162,000 nonfarm payrolls , which was nearly triple the 50,000 that experts had predicted .
• 1:04
  While a strong economy sounds like good news , it actually has investors worried that the Federal Reserve will keep raising interest rates to keep things from overheating .
• 1:14
  Right now , there is about a 60 percent chance the Fed will hike rates by 25 basis points at their meeting on September 15th .
• 1:24
  We are also seeing the 10year Treasury yield sitting near 4.80 percent .
• 1:29
  Think of high yields like gravity ; they pull down stock prices because they make borrowing more expensive and offer a safer alternative to stocks .
• 1:38
  This is specifically putting pressure on growthoriented funds like the Invesco QQQ Trust .
• 1:45
  Looking at the sectors , technology is a bit of a mixed bag .
• 1:49
  We saw chipmakers like Nvidia and Micron surge last week because everyone is still very excited about the latest AI infrastructure and GPT models .
• 1:59
  However , the big software giants like Microsoft and Apple actually saw their shares drop by about 2 to 2.5 percent .
• 2:07
  It looks like investors are shifting their money from software over to the hardware that makes AI possible .
• 2:14
  In other news , if you have been to the gas station lately , you have probably noticed prices are up .
• 2:21
  Crude oil has spiked toward 91 dollars a barrel because of tensions in the Middle East , specifically around the Strait of Hormuz .
• 2:28
  This is great for the Energy Select Sector SPDR , or XLE , but it acts like a tax on the rest of us , leaving less money for shopping and retail .
• 2:38
  Real estate is also having a tough time .
• 2:40
  The Vanguard Real Estate ETF is in a bearish trend right now , largely because mortgage rates are staying so high .
• 2:48
  Looking ahead to the