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The Great Tech Split: Amazon Soars and Value Rotates · The SPY Trader

• 0:00
  Hey there market movers and savvy savers !
• 0:03
  Welcome back to Spy Trader , your goto source for making sense of the madness on Wall Street .
• 0:08
  I am your host , Barnaby Bullseye , and boy , do we have a lot to unpack as we close out the books on another month .
• 0:15
  It is currently 2:30 pm on Friday , July 31st , 2026 , and if you are listening from the Pacific coast like I am , you are probably looking forward to the weekend .
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  But before we head to the beach or the backyard grill , let's look at how the markets wrapped up this volatile but surprisingly resilient month of July .
• 0:37
  The major indexes finished this Friday in the green , with the S&P 500 , which we track through the SPY ETF , rising pointseven percent to close at 7,489.72 .
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  The Nasdaq , or the QQQ , was the star of the show today , jumping a full one percent , while the Dow Jones Industrial Average added pointfive percent .
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  Even with this nice endofmonth rally , the S&P 500 is still about one pointsix percent below that alltime high we saw back in early June .
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  The big story today was the Great Tech Split .
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  It seems the market is finally separating the AI winners from those who are just spending a lot of money without much to show for it .
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  Amazon , ticker AMZN , was the absolute standout today , soaring between thirteen and fifteen percent after showing us a massive beat in their AWS cloud business and AI growth .
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  On the flip side , our friends over at Apple , ticker AAPL , had a rough go of it , with shares tumbling over seven percent after a lackluster forecast and some misses in their China revenue .
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  We are also seeing a major rotation into other areas .
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  As tech gets a bit more selective , investors are hunting for value in banks and industrials .
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  JPMorgan Chase , ticker JPM , and firms like Worthington Steel , ticker WS , are seeing a lot of interest as catchup plays .
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  Meanwhile , the Energy sector , tracked by the XLE ETF , remains on high alert due to the conflict in the Middle East .
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  With oil prices sitting between eightyfive and ninety dollars a barrel , companies like Chevron , ticker CVX , are right in the middle of the inflation conversation .
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  Speaking of inflation , let's talk about the big picture .
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  The US economy is in a bit of a sluggish but stable phase .
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  We saw Q2 GDP growth at one pointfive percent , which is a bit slower than the start of the year .
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  However , you and I are still out there spending , with consumer spending growing at a robust three pointtwo percent .
• 2:48
  The Federal Reserve , led by Kevin Warsh , kept interest rates steady this week at three pointfive to three pointsevenfive percent , but they sound pretty hawkish .
• 2:58
  With inflation still at three pointseven percent , the markets are betting heavily on another rate hike this September .
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  This has pushed the 10year Treasury yield up to four pointseventhree percent , a multiyear high .
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  So , what should we do with all this information ?
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  Here is the Spy Trader game plan .
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  For your core holdings , I recommend staying diversified with the Vanguard Total Stock Market ETF , ticker VTI .
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  It gives you exposure to the whole market , including those small and midcap companies that have actually been outperforming tech recently .
• 3:32
  If you want to play the AI trend , stop looking at the apps for a moment and look at the infrastructure .
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  I like Vertiv , ticker VRT , for their liquid cooling technology , and Micron , ticker MU , for their highbandwidth memory .
• 3:46
  If you want a simpler approach , the Technology Select Sector SPDR , ticker XLK , is the cleanest way to play the cloud dominance of Microsoft and Amazon , though be ready for some Applerelated bumps .
• 4:00
  To protect yourself against rising oil prices and geopolitical stress , keep an eye on the Energy Select Sector SPDR Fund , ticker XLE , or individual giants like Chevron , ticker CVX , which just reported very strong earnings .
• 4:16
  And for those looking for income , cash is definitely not trash right now .
• 4:21
  With yields so high , the Vanguard Total Bond Market ETF , ticker BND , is a great spot for monthly income .
• 4:28
  If you think rates have peaked , the iShares 20 plus Year Treasury Bond ETF , ticker TLT , could offer some big upside if the economy cools down later this year .
• 4:39
  That is all for this afternoon !
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  Keep your eyes on the charts and your feet on the ground .
• 4:44
  This is Barnaby Bullseye signing off .
• 4:47
  Have a great weekend !