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Wall Street’s October Kickoff: Soft Landings and AI Resilience · The SPY Trader

• 0:00
  Good morning , market enthusiasts !
• 0:02
  It is 6 am on this beautiful Sunday , October 4th , 2026 , out here on the Pacific Coast .
• 0:09
  I am your host , Sunny SideUp , and you are listening to Spy Trader .
• 0:14
  Whether you are sipping your first cup of cocoa or getting ready for a morning walk , I have got the pulse on everything Wall Street so you can start your week ahead of the curve .
• 0:23
  We are entering the first full week of October with a cautiously optimistic but volatile outlook .
• 0:29
  After a turbulent September , investors are weighing a cooling labor market against high Treasury yields and the start of the thirdquarter earnings season .
• 0:39
  The market ended last week on a high note following a weakerthanexpected September jobs report .
• 0:45
  Only 29,000 jobs were added compared to the 90,000 expected .
• 0:50
  In our world , this bad news is actually good news because it suggests the Fed might stop raising rates .
• 0:58
  This data led the Nasdaq Composite to a fresh record high of approximately 30,808 and boosted the S&P 500 to 7,722.72 .
• 1:10
  Looking at the week ahead , keep your eyes on Monday for the ISM Services PMI .
• 1:15
  This is a massive indicator for the US economy , and a reading slightly lower than previous months would be cheered as a soft landing signal .
• 1:24
  On Wednesday , we get the FOMC Minutes .
• 1:28
  This will reveal the internal family fight within the Fed regarding their recent rate hike .
• 1:33
  If those minutes sound aggressive , we might see a spike in the 10year Treasury yield , which recently touched a multidecade high of 5.34 percent .
• 1:42
  Also , on Friday , we will see the University of Michigan Consumer Sentiment report , which is critical right now as gas prices fluctuate due to the USIran conflict .
• 1:54
  In sector news , AI infrastructure is still the place to be .
• 1:59
  Nvidia , Broadcom , and AMD showed great resilience last week .
• 2:03
  We also have the soft opening of earnings season .
• 2:06
  PepsiCo , ticker PEP , and Constellation Brands , ticker STZ , report on Tuesday and Wednesday .
• 2:13
  These will tell us a lot about the resilient consumer .
• 2:16
  Then on Thursday , Delta Air Lines , ticker DAL , reports , and we will be listening closely for comments on fuel costs and travel demand amidst those Middle East tensions .
• 2:26
  Now , for some trading recommendations .
• 2:30
  For growth and momentum , look at the Invesco QQQ Trust or Nvidia , ticker NVDA .
• 2:36
  If the services data on Monday is soft , it reinforces the pause narrative for the Fed , which historically benefits these tech stocks .
• 2:44
  For an earnings play , consider PepsiCo , ticker PEP , or the Consumer Staples Select Sector SPDR , ticker XLP .
• 2:53
  PepsiCo is a classic flight to safety if geopolitical tensions escalate .
• 2:58
  If you want to hedge against yield volatility , look at the iShares 20 plus Year Treasury Bond ETF , ticker TLT .
• 3:06
  Yields in the 5.3 percent range are attracting buyers , and if economic data continues to miss , TLT should see a sharp relief rally .
• 3:16
  Finally , for global diversification , the Vanguard FTSE Emerging Markets ETF , ticker VWO , is worth a look .
• 3:25
  A cooling US labor market often weakens the US Dollar , which is a massive tailwind for international stocks .
• 3:33
  To summarize , expect a strong start on Monday , but stay alert for volatility on Wednesday afternoon around the release of the Fed minutes .
• 3:41
  The pros are currently in a reload mode for the fourth quarter , and buying on minor dips remains the preferred strategy .
• 3:47
  That is all for this morning's update .
• 3:49
  I am Sunny SideUp , and this has been Spy Trader .
• 3:53
  Stay sharp and enjoy your Sunday !