Latest / The SPY Trader / Record Runs and the AI Revolution: Navigating a Shifting Market

Transcript

Record Runs and the AI Revolution: Navigating a Shifting Market · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host Sunny Sideup coming to you live at 2:30 pm on Tuesday June 2nd 2026 here in sunny Pacific time .
• 0:14
  We have a lot of ground to cover today as the market continues its wild ride into the record books .
• 0:21
  If you have been checking your portfolios lately you probably have a bit of a smile on your face because we are seeing a market that just does not want to quit driven by an artificial intelligence boom that feels like it is moving at the speed of light .
• 0:36
  Let us look at the scoreboard as we wrap up this Tuesday session .
• 0:40
  The S&P 500 closed at 7609.78 which is a modest gain of 0.13 percent but more importantly it marks the twentyfourth record close of 2026 .
• 0:56
  The Nasdaq Composite also hit a fresh high finishing at 27093.90 .
• 1:02
  However the surprise winner today was the Dow Jones Industrial Average which climbed 0.45 percent to finish at 51307.79 .
• 1:13
  It looks like some of those value sectors are finally starting to catch up to the tech giants .
• 1:18
  For those of you tracking the SPDR S&P 500 ETF Trust also known as SPY or the Vanguard Total Stock Market ETF VTI you are looking at yeartodate returns exceeding 11 percent .
• 1:33
  We are currently on a nineweek winning streak which is the longest we have seen since 2023 .
• 1:39
  Technology remains the undisputed leader in this environment .
• 1:43
  Marvell Technology ticker symbol MRVL had an absolutely incredible day leaping nearly 33 percent .
• 1:51
  This happened after Nvidia CEO Jensen Huang suggested that Marvell could be the next trilliondollar company .
• 1:58
  When the king of AI speaks the market listens !
• 2:02
  We also saw Hewlett Packard Enterprise or HPE soar 19 percent after they crushed their earnings thanks to massive demand for AI servers .
• 2:12
  On the flip side Alphabet saw its stock fall 4 percent today following the announcement of a massive 80 billion dollar stock sale to fund its AI infrastructure .
• 2:23
  This has raised some bubble concerns regarding how much these companies are spending .
• 2:29
  Meanwhile Palo Alto Networks PANW gained over 8 percent in afterhours trading after beating earnings estimates proving that cybersecurity is still a top priority .
• 2:39
  Microsoft even announced a new AIintegrated quantum chip today signaling the next frontier beyond generative AI .
• 2:47
  Looking at the macro picture things are a bit complicated .
• 2:51
  Inflation is still hovering around 3.9 percent which is significantly above the Fed's 2 percent target .
• 2:58
  Our Fed Chair Kevin Warsh is keeping interest rates in the 3.50 to 3.75 percent range and today's JOLTS data showed 7.6 million job openings .
• 3:11
  That indicates a labor market that is still too hot for the Fed to consider cutting rates .
• 3:16
  We also have to keep an eye on the Middle East where the ongoing Iran conflict has pushed WTI crude oil near 93 dollars and 51 cents a barrel .
• 3:27
  The energy sector via the XLE ETF is serving as a hedge against these shocks but it remains volatile .
• 3:34
  Interestingly Real Estate through the VNQ ETF has been surprisingly resilient up 10 percent this year as investors seek tangible assets .
• 3:45
  So what should you be doing with your money right now ?
• 3:48
  For your core allocation we suggest a growth plus defense tilt .
• 3:53
  While we love the Vanguard S&P 500 ETF VOO it is wise to supplement that with the Health Care Select Sector SPDR Fund or XLV .
• 4:04
  Healthcare offers a defensive rotation if the AI trade begins to cool off .
• 4:09
  Second if you want to stay in the growth game look at the Invesco QQQ Trust or the Technology Select Sector SPDR Fund XLK .
• 4:19
  The pick and shovel providers like Nvidia and Broadcom continue to report accelerating demand and Marvell is a specific highconviction momentum pick right now .
• 4:30
  Third do not forget about diversification .
• 4:33
  We recommend the Vanguard Total International Stock ETF VXUS and SPDR Gold Shares GLD .
• 4:42
  International stocks in the Vanguard FTSE Developed Markets ETF VEA trade at a big discount to the S&P 500 and GLD is a necessary hedge as gold rose today amid U.S.Iran tension .
• 4:56
  Finally for fixed income the iShares Core U.S.
• 4:59
  Aggregate Bond ETF AGG is yielding 4.45 percent offering a robust income cushion .
• 5:06
  If you are betting on a lateyear recession the iShares 20 plus Year Treasury Bond ETF TLT is worth a look .
• 5:14
  That is all for this edition of Spy Trader !
• 5:17
  I am Sunny Sideup and keep an eye on those charts !