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AI Tech Surge vs. The Inflation Anchor · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host , Sunny Sideup , and I am so glad you could join me for our midafternoon market checkin .
• 0:10
  It's 2:30 pm on Thursday , May 21st , 2026 .
• 0:14
  ( Pacific ) .
• 0:15
  We are seeing some fascinating movements today as the market balances a ' higherforlonger' interest rate environment with some serious excitement in the world of technology .
• 0:25
  Right now , the vibe on Wall Street is definitely a ' buy the dip ' mentality .
• 0:31
  After some early morning volatility , stocks have been trending higher today as oil prices retreated from their recent peaks .
• 0:38
  Let's look at the numbers for our major indices .
• 0:41
  The S&P 500 , which we track through ETFs like SPY and VOO , is trading around 7,445 .
• 0:51
  That is up approximately 0.2 percent today and a solid 8.8 percent yeartodate .
• 0:58
  The Nasdaq100 , or the QQQ , is sitting at 26,293 , up 0.1 percent today , and it continues to lead the major indices with a 13.1 percent gain this year , fueled by massive spending in AI infrastructure .
• 1:15
  But the real star today is the Dow Jones Industrial Average , the DIA , which is leading the charge with a 0.6 percent gain to over 50,285 .
• 1:27
  A standout in the Dow today is Goldman Sachs , ticker symbol GS , which is up 5.8 percent as the higherforlonger rate environment boosts their net interest income .
• 1:38
  Looking at specific sectors , the AI Vanguard represented by the XLK Technology Select Sector fund remains the market engine .
• 1:46
  Nvidia , ticker symbol NVDA , released what I can only call a blockbuster earnings report yesterday , May 20th , reporting record revenue of 81.6 billion dollars Their new ' Vera Rubin' AI platform is expected to drive a generational leap in spending .
• 2:06
  This has solidified the tech sector dominance , even if some analysts are starting to worry about valuations .
• 2:12
  In the energy sector , the XLE fund fell 2.4 percent yesterday as Brent crude prices dipped from 109 to 103 dollars a barrel on rumors of a ' Quick Peace' ceasefire scenario in the Middle East .
• 2:26
  Meanwhile , real estate is making a stealth recovery .
• 2:30
  The Vanguard Real Estate ETF , or VNQ , is up 10 percent yeartodate , benefiting from the AI boom through data centers and a recovery in highend retail malls .
• 2:42
  On the tougher side of things , Walmart , ticker WMT , reported strong revenue today but fell 7.3 percent after providing weak profit guidance .
• 2:52
  It seems high fuel and food costs are finally starting to crimp the ' cautious consumer .
• 2:58
  ' In the macro world , our new Fed Chair Kevin Warsh is being sworn in this week .
• 3:04
  Inflation is still a concern with CPI at 3.8 percent , and the Fed minutes show a majority of officials are open to rate hikes if things don't cool down .
• 3:15
  This is keeping bond yields elevated , with the 10year Treasury at 4.55 percent .
• 3:22
  The TLT bond ETF is trading near its 52week lows at 83 dollars and 56 cents , where investors are actually losing more in price than they are gaining in yield .
• 3:34
  Interestingly , international stocks through the VXUS fund are up 10 percent this year , actually outperforming the S&P 500 thanks to Japanese corporate reforms and an industrial revival in Europe .
• 3:49
  For our strategy today , if you are playing the AI infrastructure growth , maintaining a core position in XLK or NVDA makes sense given that companies like Microsoft and Alphabet plan to spend 750 billion dollars on AI this year .
• 4:06
  If you are looking for yield , consider the VNQ real estate fund or the AGG bond ETF for broader exposure .
• 4:15
  REITs like Simon Property Group , ticker SPG , are offering dividends over 5 percent which looks much better than longterm government bonds right now .
• 4:25
  I would avoid TLT for now as it is just too sensitive to rate hikes .
• 4:30
  Finally , for a geopolitical hedge , you might look at the VXUS international fund or gold through the GLD shares to diversify away from U.S.
• 4:40
  tech concentration while the Strait of Hormuz remains a flashpoint .
• 4:45
  Our verdict for today is that the market is ' bullish but fragile .
• 4:49
  ' While AI earnings are the wind in the sails , the inflation anchor is heavy .
• 4:54
  Favor quality earnings like NVDA or Microsoft and real assets like VNQ over speculative growth .
• 5:01
  That's all for now , I'm Sunny Sideup , and this has been Spy Trader .
• 5:06
  Stay savvy out there !