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Relief Rally: Tech Soars as Markets Hit New Heights · The SPY Trader

• 0:00
  Hello everyone and welcome to another episode of Spy Trader !
• 0:04
  I am your host , Sunny SideUp , and it is a beautiful day to talk about the markets .
• 0:09
  It is currently 2:30 pm on Monday , August 3rd , 2026 , here in the Pacific time zone .
• 0:16
  We have seen some incredible action on the charts today , so let's dive right into what is moving your money .
• 0:23
  The big headline today is a massive relief rally sweeping across Wall Street .
• 0:28
  Thanks to a sharp deescalation in Middle East tensions , we are seeing a shift into a riskon environment .
• 0:35
  President Trump announced a pause on planned strikes against Iran , aiming to reopen the Strait of Hormuz , and the markets are celebrating .
• 0:43
  The S&P 500 , which we track through the SPY and VOO ETFs , is up about one point four eight percent , trading near seventysix hundred .
• 0:53
  Meanwhile , the Dow Jones has officially reclaimed the fiftythree thousand level for a fresh record close .
• 1:00
  It is not all green though ; the energy sector is taking a hit as oil prices plunge .
• 1:05
  The Energy Select Sector SPDR , or XLE , is down about one point three percent today .
• 1:11
  On the flip side , we have a massive milestone to celebrate in big tech .
• 1:16
  Amazon , ticker AMZN , officially crossed the three trillion dollar market cap mark today !
• 1:22
  This was fueled by strong performance in their AWS cloud division and the expectation of lower shipping costs thanks to falling fuel prices .
• 1:31
  Speaking of tech , the QQQ and XLK are leading the charge today .
• 1:36
  This is happening because Treasury yields are retreating , with the tenyear yield dipping to four point six eight percent .
• 1:43
  Lower yields usually make those future earnings for growth companies like Microsoft and Amazon look much more attractive today .
• 1:50
  Now , looking at the bigger picture , we are in what analysts call a goldilocks scenario .
• 1:55
  Inflation is cooling , with June figures showing CPI at three point five percent .
• 2:02
  While the Federal Reserve held rates steady last week , the committee is a bit divided , so everyone is keeping a close eye on the upcoming jobs report .
• 2:11
  In other corporate news , Marriott , ticker MAR , is actually a rare laggard today , dropping nearly seven percent after some weaker guidance for the next quarter .
• 2:21
  If you are looking for where to put your money right now , I have a few thoughts based on today's data .
• 2:27
  First , I would stay overweight in largecap growth and technology .
• 2:32
  Using instruments like the Invesco QQQ Trust or the Technology Select Sector SPDR Fund makes sense because companies like Microsoft are still seeing forty percent growth in their cloud business .
• 2:44
  These are the engines of the market right now .
• 2:47
  Second , do not ignore international markets .
• 2:51
  The Vanguard Total International Stock ETF , known as VXUS , is looking great as European markets rally on lower energy costs .
• 3:01
  It is a good way to diversify away from U.S.
• 3:04
  election volatility later this year .
• 3:06
  For those of you looking for a bit more stability and income , it might be time to look at the Vanguard Real Estate ETF , or VNQ .
• 3:15
  Real estate tends to be a laggard play that catches up when interest rates start to stabilize or fall .
• 3:21
  Just be careful with longterm bonds like TLT for now , as the Fed still sounds a bit hawkish .
• 3:27
  Finally , I would be very cautious with energy right now .
• 3:32
  With the geopolitical risk premium disappearing from oil , the XLE and USO might face some more downward pressure in the short term .
• 3:41
  That is all for this update !
• 3:43
  Stay positive , keep an eye on those yields , and I will see you back here in a few hours for the next update of Spy Trader .