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Value Over Growth: Markets Pivot Amid Rising Oil · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast!
• 0:03
  I am your host, Sunny Shares, coming to you live at 2:30 pm on this Tuesday, October 20th, 2026, here in the Pacific time zone.
• 0:11
  It is great to have you with us as we navigate another whirlwind day in the markets.
• 0:15
  We have got quite a story today where the old school is meeting the new school, and the old school seems to be winning the round.
• 0:22
  The Dow Jones Industrial Average had a fantastic day, jumping over one percent to finish at 52,495.88.
• 0:29
  Meanwhile, our friends over at the techheavy Nasdaq were basically flat, actually slipping just a tiny bit by zeropointzerotwo percent.
• 0:39
  The S&P 500 managed to keep its head above water, rising about zeropointtwoeight percent to end at 7,712.57.
• 0:48
  So, what is behind this tugofwar?
• 0:51
  Well, it is a classic riskoff move.
• 0:53
  Investors are feeling a bit jittery because of the ongoing conflict in the Middle East involving Iran, which has sent oil prices knocking on the door of 100 dollars a barrel.
• 1:02
  This has been a huge boost for the Energy sector, with the XLE fund rising over two and a half percent today.
• 1:09
  We are also seeing people run for cover in safe spots like Utilities and Consumer Staples.
• 1:14
  The XLU Utilities fund rose over one point three percent, and XLP, which covers your everyday essentials, was up over one percent as well.
• 1:22
  On the flip side, the big AI boom is taking a breather.
• 1:26
  The Technology sector, specifically the XLK ETF, took a three percent hit today.
• 1:30
  It seems people are starting to wonder when all that money spent on AI chips and servers is going to start showing up as real profit.
• 1:38
  Meta is a great example of this; it fell for the fifth day in a row, closing at 693 dollars and 94 cents right before its big earnings report tomorrow.
• 1:48
  Looking at the big picture, inflation is proving to be a bit sticky.
• 1:52
  The latest report showed prices rising 3.7 percent, which was higher than expected, mostly because of those soaring energy costs.
• 2:00
  Because of this, there is now a 45 percent chance the Federal Reserve will raise interest rates again at their meeting next week, and the 10year Treasury yield is sitting high at 5.08 percent.
• 2:11
  This makes bonds a serious competitor for your investment dollars compared to risky growth stocks.
• 2:16
  Now, let us talk about what we can actually do with this information.
• 2:20
  First, it might be time to look at value and income rather than just chasing growth.
• 2:25
  I recommend checking out the Health Care Select Sector SPDR, known as XLV.
• 2:29
  People always need healthcare, and companies like UnitedHealth Group and Eli Lilly are solid examples of businesses that have steady demand regardless of interest rates.
• 2:38
  Second, if you want to protect your wallet from high gas prices, the Energy Select Sector SPDR or XLE is a smart move.
• 2:45
  It holds giants like ExxonMobil and Chevron that are generating massive cash right now.
• 2:50
  Third, if you are worried about being too heavy in those big tech giants like Apple or Microsoft, consider the Vanguard Total Stock Market ETF, or VTI.
• 2:59
  It gives you a piece of everything, including smaller companies that might lead the next market phase.
• 3:05
  Finally, be careful with longterm bonds.
• 3:07
  While the TLT ETF is popular, it is very sensitive to interest rates.
• 3:12
  A safer bet for now might be the iShares Core U.S. Aggregate Bond ETF, or AGG, which focuses on shorterterm stability.
• 3:20
  Even with all the volatility, there are bright spots, like United Airlines reporting 17 percent revenue growth because people are still traveling!
• 3:27
  Keep your head up, stay diversified, and I will be back in a few hours with another update.
• 3:32
  Happy trading!