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AI Supercycle Drives Global Markets to Record Highs · The SPY Trader

• 0:00
  Hello everyone !
• 0:01
  This is your host , Penny Pincher , and you are listening to the Spy Trader podcast .
• 0:06
  It is a beautiful Tuesday afternoon , August 4th , 2026 , and the clock just hit 2:30 pm here on the Pacific Coast .
• 0:16
  We are witnessing history today , friends .
• 0:19
  The stock market isn't just walking ; it is sprinting to alltime record highs .
• 0:24
  We have what I like to call a triple threat of goodness happening right now : blockbuster corporate earnings , a big drop in oil prices , and some muchneeded signs of easing tensions in the Middle East .
• 0:36
  Let's look at the scoreboard .
• 0:38
  The S&P 500 , which we track through the SPY , gained one point seven nine percent to close at a record seven thousand seven hundred thirtysix .
• 0:48
  This is actually the twentyfifth time we have hit a record close just this year !
• 0:53
  The Nasdaq , or the QQQ , jumped over two and a half percent , led by a massive comeback in artificial intelligence and semiconductor stocks .
• 1:02
  Even the Dow Jones Industrial Average added nine hundred seven points to close at over fiftyfour thousand .
• 1:09
  While stocks are up , Treasury yields are slipping a bit , with the tenyear yield at four point six one percent , which gives our growth stocks some room to breathe .
• 1:19
  Looking at our sectors , Technology is the star of the show .
• 1:23
  The XLK was up over four percent today .
• 1:26
  Why ?
• 1:27
  Because the AI supercycle is real , and companies are proving that all that spending on research is finally turning into massive revenue .
• 1:35
  Industrials followed closely behind , up three point four two percent .
• 1:40
  On the flip side , Energy lagged because oil prices plummeted over six percent to about seventyfive dollars a barrel on news that the Strait of Hormuz might reopen soon .
• 1:52
  In our macro world , the Federal Reserve under Chair Kevin Warsh kept interest rates steady at three and a half to three point seven five percent last week , but there is a split in the vote .
• 2:03
  Three members want a hike in September to fight inflation , which is currently sitting at three point seven percent .
• 2:09
  While our overall GDP growth was a bit slow at one point five percent , the American consumer is still resilient , with domestic sales growing at a healthy three point two percent .
• 2:22
  Now , let us talk about the individual stars of the day .
• 2:25
  Palantir , ticker symbol PLTR , was the absolute standout , surging nearly thirty percent !
• 2:32
  CEO Alex Karp described the demand for their AI software as otherworldly after a ninetythree percent leap in revenue .
• 2:40
  Caterpillar , good old CAT , gained five point six percent after its firstever twenty billion dollar revenue quarter .
• 2:49
  It turns out their power systems are in huge demand for building those massive AI data centers .
• 2:55
  AMD also reported record revenue of eleven point five billion dollars , and SpaceX , in its first quarterly report as a public company , brought in seven point eight billion dollars thanks to Starlink .
• 3:07
  So , what does this mean for your wallet ?
• 3:10
  First , consider the physical infrastructure of AI .
• 3:14
  While everyone loves software , the power and cooling systems are the bottleneck .
• 3:19
  You might look at the Technology Select Sector SPDR , or XLK , for broad exposure , or even Caterpillar as a play on that industrial backbone .
• 3:29
  For your core portfolio , it is hard to ignore the momentum .
• 3:33
  Staying on the sidelines has been expensive this year , so maintaining a position in something like the Vanguard S&P 500 ETF , ticker VOO , keeps you in the game .
• 3:44
  However , with that Fed meeting coming up in September , we could see some volatility .
• 3:50
  If you want to be a bit more defensive , the iShares Core U.S.
• 3:53
  Aggregate Bond ETF , or AGG , lets you lock in those yields near four point six percent .
• 4:00
  I also think there is an opportunity in Real Estate .
• 4:04
  As oil prices drop and yields slip , sectors sensitive to interest rates might find a floor .
• 4:10
  A small position in the Vanguard Real Estate ETF , VNQ , could be a smart tactical move if the Fed manages a soft landing .
• 4:19
  Finally , for those who like a little more excitement , Palantir remains a pure play on AI adoption , and any dip in SpaceX could be a longterm entry point into the new space economy .
• 4:31
  Just remember , friends , while today was a great day , always stay diversified and do not put all your eggs in one basket .
• 4:39
  This has been Penny Pincher with the Spy Trader .
• 4:42
  Stay savvy out there !