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Market Rotation: Tech Tumbles as Healthcare Shines · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host , Penny Pincher , and I am so glad you could join me for our midafternoon update .
• 0:10
  It is currently 2:30 pm on Wednesday , June 24th , 2026 , out here on the sunny Pacific coast .
• 0:19
  We are seeing some real drama in the markets today , folks .
• 0:22
  It feels like a bit of a tugofwar out there .
• 0:26
  While the Dow Jones Industrial Average managed to keep its head above water , gaining ground , the techheavy Nasdaq and the S&P 500 are feeling the heat , marking their third straight day of downward pressure .
• 0:39
  Specifically , the S&P 500 , or the SPY , slipped pointone percent to close at 7,358.22 .
• 0:48
  Don't panic though , because the index is still up about sevenandahalf percent for the year thanks to resilient earnings .
• 0:56
  The Nasdaq , or QQQ , took a bigger hit , dropping pointfour percent to 25,476.63 as investors started locking in profits from the 2026 AI rally .
• 1:09
  On the flip side , the Dow , the DIA , rose pointfour percent to 51,848.90 , and those smaller companies in the Russell 2000 , the IWM , also gained pointfour percent .
• 1:22
  What we are seeing is a classic rotation .
• 1:26
  People are taking their wins from the big tech giants and moving that money into safer , defensive spots .
• 1:32
  Looking at the sectors , Technology , the XLK , fell pointsixnine percent today .
• 1:38
  We saw giants like Microsoft and Nvidia getting their valuations tested with declines of one to two percent .
• 1:44
  But hey , keep an eye on Micron Technology , ticker MU .
• 1:49
  They just reported a massive earnings beat after hours and their stock is up over thirteen percent in late trading .
• 1:56
  That might be the lifeline the AI trade needs !
• 2:00
  Healthcare was the real star today , though .
• 2:02
  The XLV jumped onepointoneseven percent .
• 2:05
  With everyone a bit nervous about tech volatility , healthcare is acting like a defensive haven .
• 2:11
  Eli Lilly , LLY , is still a core driver there because of the sustained demand for metabolic health treatments .
• 2:18
  Meanwhile , Energy took a dive as Brent crude fell nearly four percent to around seventyfour dollars a barrel .
• 2:26
  This happened because of some good news on the geopolitical front , specifically a preliminary agreement between the U.S.
• 2:33
  and Iran to reopen the Strait of Hormuz .
• 2:36
  This is lowering the ' war premium ' on oil , which is great for the broader economy but a net negative for the XLE energy producers .
• 2:44
  Now , let's talk about the big boss , the new Fed Chair , Kevin Warsh .
• 2:50
  We are officially in the ' Warsh Fed' era .
• 2:53
  Even though rates were held steady between threepointfive and threepointsevenfive percent last week , the June 'dot plot ' was hawkish .
• 3:01
  Nine officials are signaling a potential rate hike later this year to combat sticky inflation .
• 3:07
  Headline CPI hit fourpointtwo percent in May , even though core inflation is lower at twopointnine percent .
• 3:15
  It is a ' waitandsee ' mode for the Fed right now .
• 3:18
  In corporate news , Alphabet , GOOGL , is moving into the big leagues of the Dow , replacing Verizon , VZ , effective next Monday .
• 3:27
  It is a huge shift showing how techforward the Dow is becoming .
• 3:31
  On the tougher side of the news , Hertz , HTZ , tumbled forty percent today after a surprise onehundred million dollar stock offering .
• 3:39
  And in a wild ' memelike ' move , Wendy's , WEN , surged twentysix percent today following viral social media campaigns .
• 3:48
  It just goes to show you that speculative retail trading is still very active !
• 3:53
  So , what should we be doing with our money ?
• 3:55
  First , let's look at diversification .
• 3:58
  If the Nasdaq is making you jumpy , consider the Vanguard Total Stock Market ETF , ticker VTI .
• 4:05
  It captures the outperformance of the Dow and small caps while maintaining tech exposure for a smoother ride .
• 4:11
  Second , I would look at the Health Care Select Sector SPDR Fund , XLV .
• 4:17
  Its inelastic demand makes it a safer bet while the Fed is being hawkish .
• 4:22
  Third , do not give up on semiconductors .
• 4:25
  Use this dip to look at Micron , MU , or the VanEck Semiconductor ETF , SMH .
• 4:31
  Micron's earnings prove that AI data center demand is still accelerating .
• 4:35
  Fourth , for stability , check out the iShares Core U.S.
• 4:39
  Aggregate Bond ETF , AGG .
• 4:42
  It provides a four percent yield and acts as a great shock absorber .
• 4:47
  Finally , keep an eye on Real Estate through the Vanguard Real Estate ETF , VNQ .
• 4:53
  As oil prices fall and inflation concerns moderate , REITs may start to recover from their slump .
• 5:00
  That is all for this update !
• 5:02
  I am Penny Pincher , and this has been Spy Trader .
• 5:05
  Stay smart and stay friendly out there !