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Navigating the Soft Landing: AI Shifts and the Financial Renaissance · The SPY Trader

• 0:00
  Hello everyone and welcome back to Spy Trader !
• 0:03
  I am your host , Sunny Sideup , coming to you live at 2:30 pm on this beautiful Tuesday afternoon , June 9th , 2026 .
• 0:13
  We have a lot to unpack today in the markets , so let us get right into it .
• 0:18
  We are currently navigating what analysts call a lateexpansion phase characterized by moderate growth and stabilized interest rates .
• 0:26
  The big news is that the Federal Reserve seems to have successfully navigated a soft landing for the economy .
• 0:33
  The May CPI report showed inflation sitting pretty at 2.1 percent , and the Fed has held the federal funds rate steady between 3.75 and 4.00 percent for the last three meetings .
• 0:46
  This plateau is giving the market muchneeded predictability .
• 0:51
  In the labor market , unemployment remains low at 3.9 percent , but wage growth has finally cooled down , which helps ease fears of a wageprice spiral .
• 1:01
  One instrument to watch here is the iShares Core U.S.
• 1:04
  Aggregate Bond ETF , or AGG , which is seeing inflows as investors lock in these plateau yields .
• 1:12
  Looking at specific sectors , the market is split between highgrowth tech and the old economy returning to form .
• 1:20
  The AI story has shifted from building hardware to software and productivity .
• 1:25
  Microsoft and ServiceNow recently reported blowout earnings driven by enterprise adoption of AI Agents , helping the QQQ climb 12 percent yeartodate and outperforming the broader S&P 500 .
• 1:38
  While we recommend maintaining exposure to the Technology Select Sector SPDR Fund , or XLK , you should focus on companies showing actual margin expansion .
• 1:50
  Meanwhile , Apple just had a positive reaction to yesterday's Worldwide Developers Conference with the reveal of Siri 3.0 , while Nvidia is facing slight selling pressure as competitors like AMD and custom chips from Amazon and Google begin to chip away at their market share .
• 2:07
  In healthcare , Eli Lilly is making headlines with a new FDA approval for its weightloss drug to treat chronic kidney disease , making the XLV a top performing defensive sector this month .
• 2:21
  Over in financials , we are seeing a massive renaissance in mergers and acquisitions now that rates have stabilized .
• 2:28
  JPMorgan Chase noted a 20 percent jump in investment banking fees for the second quarter , making the Financial Select Sector SPDR Fund , or XLF , a major beneficiary .
• 2:42
  On the other hand , the Energy Select Sector SPDR , or XLE , is under pressure today with oil prices dropping to 72 dollars a barrel due to a surprise inventory build and easing geopolitical tensions .
• 2:56
  So , what should you be doing with your portfolio ?
• 2:59
  For your core strategy , I recommend the Vanguard Total Stock Market ETF , or VTI .
• 3:07
  With the 2026 midterm elections approaching , volatility will likely increase , and VTI provides exposure to small and midcap companies that benefit from lower borrowing costs .
• 3:19
  For growth , keep exploring the Invesco QQQ Trust .
• 3:24
  Despite high valuations , the earnings growth of the Magnificent Seven continues to justify their premiums as AI becomes a revenue driver .
• 3:34
  If you are looking for income and stability , check out the iShares 20 plus Year Treasury Bond ETF , also known as TLT .
• 3:42
  If the economy slows down more than expected , the Fed may pivot to cuts , offering capital appreciation and a steady yield .
• 3:50
  For a tactical play , stay with XLF .
• 3:53
  We are in a Goldilocks zone for banks where rates are high enough for profit but low enough to avoid defaults .
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  Finally , for diversification , consider SPDR Gold Shares , or GLD .
• 4:05
  Gold hit 2,500 dollars an ounce this month , acting as a geopolitical insurance policy .
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  Overall , the market is bullish but cautious .
• 4:15
  Stick to quality , diversify across sectors like Healthcare and Financials , and use fixed income like AGG or TLT to dampen the expected election year volatility .
• 4:26
  That is all for today .
• 4:28
  Stay smart and I will see you back here soon !