Latest / The SPY Trader / Tech Peaks and a Changing Fed: Navigating Market Highs

Transcript

Tech Peaks and a Changing Fed: Navigating Market Highs · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host , Sunny Sideup , and I am so glad you could join me for our afternoon market wrapup .
• 0:10
  It is currently 2:30 pm on Friday , May 8th , 2026 , here in the Pacific time zone .
• 0:17
  We are heading into the weekend with some serious electricity in the air , so let us dive right into what is moving your money today .
• 0:25
  The headline today is one of incredible resilience .
• 0:29
  Despite a lot of noise coming out of the Middle East and a major leadership change at the Federal Reserve , the U.S.
• 0:35
  stock market is trading right near record highs .
• 0:38
  The S&P 500 , which we track through the SPY ETF , is hovering around 7,340 , up about point seven percent today .
• 0:48
  If we hold these gains , we are looking at the sixth straight weekly gain , which is the longest winning streak we have seen since way back in 2024 .
• 0:58
  But the real star of the show is the techheavy Nasdaq100 , or the QQQ .
• 1:03
  It jumped over one point two percent today , crossing the 29,000 mark for the first time ever .
• 1:10
  This is being fueled by an AI trade that just refuses to quit .
• 1:14
  Meanwhile , the blue chips in the Dow , or the DIA , are lagging a bit , up only point two percent as investors move their cash out of traditional names and into highgrowth tech .
• 1:27
  Looking at the bigger picture , our economy is in a bit of a Goldilocks spot , though it is being tested .
• 1:33
  This morning we got the NonFarm Payrolls report , and wow , it was a surprise !
• 1:38
  We added 115,000 jobs , which is nearly double what economists expected .
• 1:44
  This tells us the U.S.
• 1:45
  economy is handling high fuel costs better than people feared .
• 1:50
  Speaking of costs , oil is still a major factor .
• 1:54
  Crude oil is sitting between 95 and 100 dollars a barrel because of the ongoing conflict with Iran and the naval blockade in the Strait of Hormuz .
• 2:04
  Over at the Federal Reserve , things are getting spicy .
• 2:08
  They voted eight to four to keep rates steady at 3.5 to 3.75 percent .
• 2:13
  That is the most divided vote we have seen since 1992 !
• 2:17
  Jerome Powell is finishing his term as Chair on May 15th , and Kevin Warsh has been confirmed to take over .
• 2:25
  The market is expecting a neutral bias from here on out .
• 2:28
  In company news , Akamai , ticker AKAM , is having a fantastic day .
• 2:34
  They announced a massive 1.8 billion dollar deal with a leading AI provider .
• 2:39
  It turns out that data delivery is the next big leg of the AI race .
• 2:44
  Monster Beverage , ticker MNST , also had a historic quarter , crossing 2 billion dollars in sales for the first time .
• 2:53
  On the flip side , The Trade Desk , ticker TTD , saw its shares fall about 12 percent after missing earnings expectations , proving that investors are being very picky about profitability right now .
• 3:06
  Even Berkshire Hathaway , ticker BRK.B , is being cautious .
• 3:11
  Under their new CEO Greg Abel , their cash hoard has hit a record 397 billion dollars .
• 3:18
  So , what should you do with this information ?
• 3:21
  First , for your core holdings , I recommend staying with the momentum but protecting yourself from a potential pullback .
• 3:28
  Use the Vanguard Total Stock Market ETF , ticker VTI , for your broad exposure .
• 3:34
  However , because tech is getting so crowded , I suggest adding a value hedge like the Schwab US Dividend Equity ETF , ticker SCHD .
• 3:44
  This lets you capture steady companies like Monster Beverage or Chevron that thrive even when gas prices are high .
• 3:51
  For those looking for growth , the AI infrastructure play is where the action is .
• 3:57
  The Technology Select Sector SPDR , or XLK , is the aggressive way to go .
• 4:03
  If you want to be more specific , look at the iShares Semiconductor ETF , ticker SOXX , or individual names like Akamai or Arista Networks .
• 4:12
  In the bond market , we might be seeing the last call for high yields .
• 4:17
  With the 10year yield at 4.35 percent , it is a great time to look at the iShares 20 plus Year Treasury Bond ETF , ticker TLT , to lock in those returns before the Fed potentially changes course .
• 4:31
  Finally , keep a little insurance in your pocket .
• 4:34
  Given the uncertainty with Iran , keeping about five percent of your portfolio in SPDR Gold Shares , ticker GLD , is a smart move to hedge against geopolitical spikes .
• 4:47
  Or , you can use the Energy Select Sector SPDR , ticker XLE , to offset those high prices at the pump .
• 4:54
  That is all for today's Spy Trader .
• 4:57
  Have a wonderful weekend , stay savvy , and I will see you next time !