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AI Phase 2: The Software Monetization Era · The SPY Trader

• 0:00
  Good morning and a very warm welcome to all our listeners out there .
• 0:04
  It is 6 am on Monday , March 16th , 2026 , here on the Pacific coast .
• 0:11
  I am your host , Sunny Side , and you are listening to another episode of Spy Trader , your goto guide for navigating the markets every few hours .
• 0:20
  I hope you have your coffee ready because we have a lot to unpack this morning as we kick off a fresh trading week .
• 0:27
  Looking at the big picture , the U.S.
• 0:29
  stock market is currently navigating what experts are calling Phase 2 of the Artificial Intelligence revolution .
• 0:36
  We are seeing a major shift from the initial hardware building phase to software monetization .
• 0:42
  As of midmorning trading , the S&P 500 , which many of you track through the SPY or IVV ETFs , is showing modest gains of 0.4 percent .
• 0:55
  Meanwhile , the Nasdaq100 , or the QQQ , is leading the pack with a 0.9 percent jump .
• 1:02
  This is a nice recovery after a bit of a wild ride last Friday during the Triple Witching expirations .
• 1:09
  In sector news , technology is the star of the show .
• 1:13
  While chipmakers like NVIDIA were the story last year , the spotlight has shifted to softwareasaservice providers .
• 1:21
  Microsoft and Salesforce are seeing a lot of momentum as their AI Copilot subscriptions are finally starting to boost their bottom lines .
• 1:30
  Interestingly , utilities are also behaving like growth stocks .
• 1:34
  AI data centers need an incredible amount of power , which has been great news for companies like NextEra Energy .
• 1:42
  On the flip side , healthcare is lagging today as largecap pharma companies like Bristol Myers Squibb deal with new Medicare price negotiations .
• 1:52
  Financials are holding steady , with JPMorgan Chase benefiting from the current yield curve , though consumer savings are looking a bit thin .
• 2:01
  On the macroeconomic front , all eyes are on the Federal Reserve’s FOMC meeting starting tomorrow .
• 2:08
  Right now , the Fed Funds Rate is at 3.75 percent , and most folks are betting they will hold steady .
• 2:17
  Inflation is cooling off , with the latest report showing headline inflation at 2.3 percent , very close to that 2 percent target we all want to see .
• 2:27
  The labor market is in a Goldilocks state , with unemployment sitting at a stable 4.1 percent .
• 2:33
  In companyspecific news , Apple is trending up over 1 percent as rumors grow about a new Apple Ring wearable and more AI for iPhones .
• 2:44
  Tesla , however , is feeling some heat , down over 2 percent due to price wars in Europe and China .
• 2:50
  And for the digital gold fans , Bitcoin is looking stable , which is providing a nice floor for the iShares Bitcoin Trust , also known as IBIT .
• 2:59
  Now , let's talk strategy .
• 3:01
  First , consider transitioning some of your tech exposure from hardware to software .
• 3:07
  While the easy money in chips has been made , companies like Adobe are just starting to shine with their AI creation tools .
• 3:15
  You might look at the QQQ or the Technology Select Sector SPDR Fund , XLK , to capture this .
• 3:22
  Second , with interest rates likely at their peak , it might be time to move some cash from your savings accounts into longerterm bonds like the iShares 20 plus Year Treasury Bond ETF , ticker TLT , to lock in those yields .
• 3:36
  Third , keep an eye on real estate .
• 3:39
  As interest rates stabilize , the fear is fading .
• 3:42
  The Vanguard Real Estate ETF , or VNQ , is a great way to play this , particularly with companies like Prologis which supports the massive AI supply chain .
• 3:54
  Finally , don't forget to look abroad .
• 3:56
  U.S.
• 3:56
  stocks are a bit pricey right now , so adding a little international flavor with the Vanguard FTSE Developed Markets ETF , ticker VEA , or even the iShares MSCI Japan ETF , EWJ , could provide a nice hedge .
• 4:13
  As a general rule , try to keep about 70 percent of your portfolio in broad market funds like SPY or VTI for stability , then use the remaining 30 percent to tilt toward these specific sectors like tech or utilities .
• 4:27
  That is all for this morning's update .
• 4:29
  Stay smart , stay patient , and I will see you back here in a few hours .
• 4:34
  This is Sunny Side , signing off for Spy Trader .