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The Great Rotation: Navigating Tech Fatigue and New Tariffs · 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 afternoon market wrapup .
• 0:10
  It is currently 2:30 pm on Friday , July 24th , 2026 , out here on the Pacific coast .
• 0:17
  We have had quite a week , and as we head into the weekend , the markets are giving us a lot to think about .
• 0:23
  It is a bit of a mixed bag today , so let's dive right into the numbers .
• 0:28
  The S&P 500 , which we track through the SPY , finished the day nearly flat , just up a tiny bit at zero point zero five percent , sitting around 7,412 .
• 0:40
  However , the real star of the show was the Dow Jones Industrial Average , or the DIA .
• 0:46
  It outperformed everyone else , rising point five percent to reach 51,947 .
• 0:53
  This was really driven by strong earnings in the industrial and financial sectors .
• 0:59
  On the flip side , the techheavy Nasdaq , or the QQQ , continued its recent slide , falling point six percent to 24,976 .
• 1:09
  It seems like that AI fatigue we have been talking about is really starting to set in .
• 1:14
  Meanwhile , our friends in the smallcap world , the Russell 2000 , fell point three percent as those higher interest rates continue to put pressure on smaller companies with less wiggle room in their budgets .
• 1:27
  What we are seeing right now is what analysts call the Great Rotation .
• 1:32
  Investors are moving away from those highgrowth tech names that have been leading the pack and are heading toward value and defensive sectors .
• 1:40
  For example , Technology fell over two percent today .
• 1:43
  Specifically , Intel dropped six and a half percent , which is tough because they actually beat their earnings expectations .
• 1:51
  But the market did not like how much they are planning to spend on new equipment .
• 1:56
  SanDisk also took a big hit , tumbling eleven percent .
• 2:00
  It is a clear signal that the hardware side of the AI trade is cooling off .
• 2:05
  But it is not all gloom and doom !
• 2:07
  Real Estate and Financials were the big winners today .
• 2:10
  The Financial Select Sector , or XLF , rose one and a half percent .
• 2:15
  People are looking for safety , and Bank of America reported a massive eight point eight billion dollars in fund inflows over the last four weeks .
• 2:24
  That is the highest we have seen since 2022 .
• 2:27
  We also saw a massive jump from Tenet Healthcare , which surged over fourteen percent after a huge earnings beat .
• 2:34
  Looking at the bigger picture , geopolitics and trade are the main drivers of volatility .
• 2:40
  The conflict in Iran is the primary risk we are watching .
• 2:44
  Oil prices hit one hundred dollars a barrel earlier this week , though they settled back down to ninety dollars and twelve cents today , which gave the Dow a bit of a relief rally .
• 2:56
  On the trade front , the Trump administration officially imposed new tariffs today , ranging from ten to twelve and a half percent on sixty trading partners , with a heavy twentytwo point two percent rate specifically on China .
• 3:10
  This is definitely hurting international funds like the Vanguard Total International Stock ETF .
• 3:18
  Regarding interest rates , we expect the Federal Reserve to hold steady between three point five and three point seven five percent next week , but with the tenyear Treasury yield at four point six nine percent , stock valuations are being challenged .
• 3:32
  So , what should you do with your portfolio ?
• 3:35
  First , I recommend rotating into quality financials .
• 3:39
  Look at the Financial Select Sector SPDR Fund , ticker XLF .
• 3:45
  With institutional money flowing into banks like JPMorgan and Bank of America , this sector is acting as a safe haven with strong fundamentals .
• 3:54
  Second , you might want to hedge against all this geopolitical and inflation risk with gold .
• 3:59
  SPDR Gold Shares , or GLD , is a great option .
• 4:04
  Gold is trading near historic highs of over four thousand dollars an ounce and serves as a great shield when trade wars and conflicts heat up .
• 4:12
  Third , consider some defensive real estate for income .
• 4:17
  The Vanguard Real Estate ETF , or VNQ , gained over one percent today .
• 4:23
  Even with high rates , companies like Welltower and Prologis are seeing strong demand in senior housing and logistics .
• 4:31
  Finally , I would suggest being very cautious with international exposure right now .
• 4:36
  I would avoid increasing your positions in the Vanguard FTSE Developed Markets ETF , or VEA .
• 4:44
  Those new tariffs and the potential hit to global trade make international stocks a bit of a dead money play for the time being .
• 4:51
  It is better to wait until things settle down before heading back overseas .
• 4:56
  That is all for today's episode of Spy Trader .
• 4:59
  I am Sunny Sideup , wishing you a safe and happy weekend .
• 5:04
  Keep a close eye on those charts , and I will talk to you again soon !