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Riding the Productivity Boom: AI’s Next Phase · The SPY Trader

• 0:00
  Good morning, everyone!
• 0:01
  It is 6 am on Saturday, October 24th, 2026, here in sunny Pacific time.
• 0:07
  You are listening to Spy Trader, your goto guide for navigating these wild market waters.
• 0:12
  I am your host, Sunny Sideup, and I am so glad to have you with me this morning.
• 0:17
  This past week was quite the ride.
• 0:20
  The S&P 500, or the SPY, climbed 1.2 percent.
• 0:24
  The Nasdaq100, the QQQ, really stole the show with a 1.8 percent gain, mostly thanks to some fantastic software earnings.
• 0:31
  On the flip side, the Dow stayed pretty flat because our industrial friends are feeling the pinch of higher costs.
• 0:38
  In the world of individual names, Tesla saw a five percent jump after their earnings call.
• 0:43
  Investors are excited about the CyberTaxi fleet getting regulatory nods in three more states, showing that their selfdriving technology is finally being monetized.
• 0:52
  Microsoft also gave us a sneak peek showing that 40 percent of Azure growth is now coming from autonomous AI agents, while Nvidia stayed strong near alltime highs thanks to new data center partnerships in the Middle East.
• 1:04
  So, what is really going on under the hood?
• 1:06
  We have entered what we call the productivity boom.
• 1:10
  After years of AI investment, the economy is growing without inflation going crazy.
• 1:15
  Inflation is sitting at 2.4 percent, which seems to be our new normal.
• 1:19
  The Federal Reserve is staying neutral with rates around 3.75 to 4 percent, but because the job market is still tight, investors are pricing out any more rate cuts this year.
• 1:30
  That is why we saw the iShares 20 plus Year Treasury Bond ETF, or TLT, drop 2.1 percent this week.
• 1:36
  Real estate, through the VNQ, is also feeling the heat as the 10year Treasury yield climbed toward 4.3 percent.
• 1:43
  Now, for the part you are all waiting for: how do we position our portfolios?
• 1:48
  I recommend a barbell strategy, balancing highgrowth tech with defensive safety.
• 1:52
  First, keep your core strong with a broad fund like the Vanguard Total Stock Market ETF, or VTI.
• 1:59
  It gives you great exposure to midcap companies benefiting from domestic trends.
• 2:04
  Second, it is time to target AI implementation over hardware.
• 2:08
  The Technology Select Sector SPDR Fund, XLK, and Microsoft are great ways to capture the shift toward softwaredriven growth.
• 2:16
  Third, let us talk about safety.
• 2:18
  With global tensions remaining persistent, having some SPDR Gold Shares, or GLD, is a smart hedge.
• 2:25
  Also, look at international markets through the Vanguard FTSE Developed Markets ETF, or VEA, which is looking much cheaper than U.S. stocks right now.
• 2:34
  Finally, if you want steady income, the JPMorgan Equity Premium Income ETF, known as JEPI, is a fantastic choice for this stable rate environment.
• 2:43
  Just a final note of caution: keep a very close eye on the 10year Treasury yield.
• 2:48
  If it crosses that 4.5 percent threshold, we might see a sharp correction in tech stocks.
• 2:54
  Until then, the path of least resistance is upward!
• 2:57
  I am Sunny Sideup, and I will see you in a few hours for our next update.
• 3:02
  Happy trading!