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Wall Street’s Winning Streak · The SPY Trader

• 0:00
  Hello and welcome back to Spy Trader , your goto podcast for navigating the exciting world of finance !
• 0:07
  I'm your host , Buck Swell , and it's 6 pm on Friday , July 25th , 2025 , Pacific time .
• 0:15
  We've got a lot to unpack from this week's market action , so let's dive right in .
• 0:20
  The US stock market has been on a fantastic bullish run this July .
• 0:25
  We've seen the S&P 500 and Nasdaq Composite consistently hitting new record highs , driven by strong corporate earnings and the everpresent buzz about potential Federal Reserve interest rate cuts .
• 0:38
  The S&P 500 actually closed at a record every day this week , rising 0.4% today alone to set its fifth alltime high this week .
• 0:48
  Yeartodate , it's up a solid 6.20% .
• 0:53
  The Nasdaq Composite has also been a superstar , achieving new highs in nine of the past ten sessions .
• 0:59
  Even the Dow Jones Industrial Average climbed , though it's just shy of its own alltime high , partly due to some news from Intel .
• 1:08
  Looking at the sectors , technology is absolutely leading the charge .
• 1:13
  AI stocks and major players like Alphabet and Nvidia are truly driving the market .
• 1:19
  Nvidia , in particular , made history by becoming the first publicly traded company to reach a four trilliondollar market capitalization , which really underscores its dominance in AI hardware .
• 1:32
  The Invesco QQQ Trust , tracking the Nasdaq100 , has rebounded a whopping 40% from its earlyApril low and is up 10.57% yeartodate .
• 1:44
  Financials also showed strength , with major US banks reporting strong secondquarter performance , and the S&P 500 Banking Index outperforming broader indices .
• 1:56
  In healthcare , there are big changes on the horizon with a 50billiondollar rural health transformation fund coming in 2026 , and new legislation like the One Big Beautiful Bill Act , or OBBBA , potentially shifting the landscape .
• 2:13
  Despite this , HCA Healthcare reported strong Q2 earnings with a 6.4% revenue increase and raised its 2025 revenue guidance .
• 2:23
  The energy sector saw a slight dip in natural gas demand domestically , but global geopolitical conditions , especially in the Middle East , continue to influence prices .
• 2:33
  On the earnings front , it was a mixed bag for some .
• 2:37
  Intel shares dropped nearly 9% today after reporting a secondquarter loss and announcing job cuts On the flip side , Deckers Outdoor jumped 11.3% after beating profit and revenue expectations , and Edwards Lifesciences rose 5.5% after surpassing Wall Street's profit expectations .
• 2:58
  Newmont also had a great run , up nearly 6% today , benefiting from surging gold prices .
• 3:04
  Alphabet continued its strong performance , rising over 1% with its CEO noting AI Mode had reached 100 million monthly active users .
• 3:15
  Even Tesla , after a challenging start to the week , rebounded with a 3.5% gain .
• 3:22
  Let's talk about the big picture and what it means for your portfolio .
• 3:26
  The market's current enthusiasm is largely built on solid foundations .
• 3:31
  Approximately 80% of S&P 500 companies have reported strong earnings , showing their ability to generate profits even in a dynamic economy .
• 3:42
  This fundamental strength , combined with the anticipation of Federal Reserve rate cuts later in 2025 , creates a really favorable investment climate .
• 3:53
  The GDPNow model estimates real GDP growth for the second quarter at 2.4% , a nice rebound from Q1's decline .
• 4:03
  Inflation figures are also showing some positive signs ; yearahead inflation expectations fell for a second straight month to 4.4% in July , and longrun expectations receded to 3.6% .
• 4:18
  While these are still a bit above December 2024 levels , the easing trend is good news .
• 4:25
  The Fed maintained the federal funds rate at 4.25%4.50% at its June meeting , and while there's a small chance of a July cut , a cut at the September meeting is seen as quite probable .
• 4:38
  Consumer sentiment has also inched up , showing cautious optimism , though it remains below historical averages , with inflation and trade policies still on people's minds .
• 4:51
  Speaking of trade , progress on deals , like the USJapan agreement , is contributing to positive sentiment , easing some tariff concerns .
• 5:01
  However , President Trump's sweeping ' Liberation Day' tariffs from April are definitely a factor the Fed is watching closely for their impact on the economic outlook .
• 5:11
  So , what does this all mean for your trading strategy ?
• 5:15
  Given the strong tech performance , easing inflation expectations , and anticipated rate cuts , a balanced approach with a lean towards growth sectors seems like the smart move right now .
• 5:27
  For broad market exposure , consider core holdings like the SPDR S&P 500 ETF Trust , ticker SPY , or similar funds like IVV or VOO .
• 5:38
  These are great for capturing the overall upside of the S&P 500 hitting those consistent record highs .
• 5:46
  And with tech leading the charge , the Invesco QQQ Trust , or QQQ , remains a very strong choice for concentrated exposure to the Nasdaq100's largest nonfinancial companies .
• 5:58
  It's really demonstrated robust yeartodate performance .
• 6:02
  For those wanting even more direct exposure to the tech leaders , the Technology Select Sector SPDR Fund , XLK , is a suitable option , especially with the AI boom continuing to fuel gains .
• 6:16
  While tech is bright , don't forget about other resilient sectors .
• 6:20
  A smaller allocation to the Financial Select Sector SPDR Fund , XLF , could be considered .
• 6:27
  The strong Q2 earnings from major banks like Goldman Sachs and Citigroup show resilience and operational strength in that sector .
• 6:36
  Now , it's also smart to keep an eye on macroeconomic shifts .
• 6:40
  While we're in a bullish trend , a degree of portfolio stability is always wise .
• 6:46
  Holding a portion in broad bond ETFs like the iShares Core U.S.
• 6:51
  Aggregate Bond ETF , AGG , or the Vanguard Total Bond Market ETF , BND , can provide income and stability .
• 7:01
  Just a cautious note on longerterm Treasury bonds , like those tracked by TLT , if inflation concerns linger or if the Fed's stance becomes more hawkish than anticipated .
• 7:13
  And finally , considering a small portion of SPDR Gold Shares , GLD , could serve as a hedge against unexpected inflation spikes or geopolitical instability , especially with gold prices having surged this year .
• 7:28
  Beyond ETFs , think about individual stocks that exemplify these trends .
• 7:34
  Nvidia , NVDA , is clearly a leader in AI hardware and a prime candidate for continued highgrowth potential .
• 7:42
  Alphabet , GOOGL , with its strong earnings and significant AI investments , shows the ongoing growth within established tech giants .
• 7:51
  And HCA Healthcare , HCA , despite broader industry shifts , demonstrated strong Q2 performance and positive guidance , suggesting resilience in healthcare .
• 8:02
  The bottom line is that strong corporate fundamentals are currently fueling investor confidence , especially within the tech sector , and the anticipated Fed rate cuts are adding to that optimism .
• 8:14
  But it's always good to have a diversified approach and stay adaptable to potential shifts in the macroeconomic landscape .
• 8:22
  Keep a close watch on the upcoming economic data , especially the Fed's next interest rate decision on July 30th .
• 8:30
  That's it for today's Spy Trader .
• 8:32
  Thanks for tuning in , and happy trading !