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Navigating the September Slump · The SPY Trader

• 0:00
  Good morning , market enthusiasts !
• 0:02
  It is 6 a.m.
• 0:04
  on Saturday , September 5th , 2026 , out here on the Pacific Coast .
• 0:09
  I am your host , Sunny Sideup , and welcome to another episode of Spy Trader , your quick look at what is moving the markets while you sip your morning coffee .
• 0:18
  We have had a bit of a bumpy start to September , haven't we ?
• 0:22
  The September Slump has officially arrived on Wall Street after a pretty sunny summer rally .
• 0:28
  Let us look at the numbers from this past week , September 1st through the 4th .
• 0:33
  The S&P 500 , which many of you track through the SPY or VOO ETFs , dipped 1.2 percent .
• 0:40
  The techheavy Nasdaq100 , or the QQQ , took a harder hit , dropping 2.1 percent .
• 0:47
  Why ?
• 0:48
  Well , everyone was biting their nails over the August Jobs Report that came out yesterday .
• 0:54
  We saw 135,000 jobs added , which was a bit lower than the 155,000 folks expected .
• 1:02
  Unemployment is now at 4.2 percent .
• 1:05
  It shows the economy is cooling down , but it is not exactly breaking apart yet .
• 1:10
  This reinforces the case for the Federal Reserve to give us a 25basis point rate cut later this month .
• 1:17
  Looking at the sectors , Technology and Consumer Discretionary were the biggest laggards .
• 1:24
  Giants like Nvidia and AMD are feeling some heat from new export controls on AI hardware and a bit of a plateau in data center spending .
• 1:33
  On the flip side , people are running toward safety .
• 1:36
  Healthcare and Utilities were our leaders this week .
• 1:39
  Eli Lilly has been a bright spot , thanks to new regulatory wins for their metabolic treatments .
• 1:45
  Even JPMorgan Chase gave us a little hope , noting that while lower rates can be tough for banks , a jump in housing loans is helping balance things out Keep your eyes on Apple next week .
• 1:58
  The iPhone 18 launch is coming , and rumors about a Neural Link interface are keeping the stock near its highs despite some supply chain jitters in Asia .
• 2:08
  Tesla also had a great Friday , jumping 3 percent because they are putting Optimus robots to work in their Texas factory .
• 2:16
  It seems investors are getting excited about AI robotics instead of just focusing on car sales .
• 2:23
  However , it was not all sunshine ; Broadcom reported strong earnings but warned about AI infrastructure getting a bit crowded , which dragged down the QQQ .
• 2:33
  So , what is the game plan ?
• 2:35
  First , consider rebalancing toward quality growth .
• 2:39
  Tech is down , but the AI story is not over .
• 2:42
  Using the dip to grab some Invesco QQQ Trust might be smart because Apple and Microsoft are looking a bit cheaper after this week's slide .
• 2:50
  Second , think about a defensive cushion .
• 2:53
  With the labor market cooling , bond yields might have peaked .
• 2:57
  Locking in some income with the Vanguard Total Bond Market ETF , or BND , is a solid way to prepare for when the Fed finally starts cutting those rates .
• 3:08
  Don't forget to look outside the U.S.
• 3:09
  too .
• 3:10
  With our domestic markets trading at high prices and some political uncertainty on the horizon , the Vanguard FTSE Developed Markets ETF , known as VEA , offers a nice hedge .
• 3:23
  It gives you exposure to markets in Europe and Japan that are currently cheaper than ours .
• 3:28
  Finally , consider a little glitter for your portfolio .
• 3:32
  Gold , through an ETF like GLD , is a great hard asset hedge when we are not sure if the economy is heading for a soft landing or something a bit rockier .
• 3:43
  In short , do not let the September Slump get you down .
• 3:47
  Stick to a disciplined strategy , maybe use a broadmarket fund like VTI to stay diversified , and keep an eye on that Apple event next week .
• 3:57
  I am Sunny Sideup , and this has been Spy Trader .
• 4:01
  Have a wonderful Saturday !