Latest / The SPY Trader / Record Highs and the AI Hardware Revolution

Transcript

Record Highs and the AI Hardware Revolution · The SPY Trader

• 0:00
  Hello and welcome back to Spy Trader , the podcast that keeps your finger on the pulse of the markets every few hours .
• 0:07
  I am your host , Sunny Sideup , and it is a beautiful afternoon here on the West Coast .
• 0:13
  It is 2:30 pm on Friday , May 29th , 2026 , and wow , what a way to wrap up the week .
• 0:20
  If you have been looking at your portfolio today , you are probably smiling .
• 0:25
  We are currently witnessing a massive riskon rally that has pushed our major indices to fresh alltime highs .
• 0:32
  In fact , the market is closing out its ninth consecutive winning week .
• 0:37
  That is the longest winning streak we have seen since way back in 2023 .
• 0:41
  This whole move is being fueled by a mix of incredible technology earnings and some very important geopolitical news coming out of the Middle East .
• 0:51
  Let us look at the scoreboard .
• 0:53
  The S&P 500 , which we track through the SPY , rose pointtwo percent today to a record 7,580.06 .
• 1:02
  The Nasdaq , or the QQQ , also climbed pointtwo percent to reach 26,972.62 .
• 1:10
  But the real surprise was the Dow Jones Industrial Average , which actually outperformed the others with a pointseven percent gain , hitting 51,032.46 .
• 1:23
  This is great news because it shows that the market rally is broadening out beyond just the giant tech names .
• 1:29
  Speaking of tech , the Technology Select Sector SPDR , known as XLK , has been the undisputed leader this month , soaring nearly twenty percent in May alone .
• 1:40
  The big story today is Dell Technologies .
• 1:43
  Dell shares surged a staggering thirtythree percent after they reported a massive beat on AI server demand .
• 1:51
  It seems the AI trade is moving from software into the actual physical hardware and servers .
• 1:57
  On the flip side , the Energy sector , which has been a top performer this year , is starting to look a bit weak .
• 2:03
  Brent crude fell to 92 dollars and 18 cents today .
• 2:07
  Why ?
• 2:08
  Well , there is news of a potential ceasefire deal between the U.S.
• 2:12
  and Iran , which is taking that war premium right out of the oil price .
• 2:17
  Interestingly , the international markets are also making waves .
• 2:22
  The Vanguard FTSE Developed Markets ETF , or VEA , is actually outperforming the S&P 500 so far this year .
• 2:31
  This is being driven by South Korean semiconductor giants like Samsung and SK Hynix , as well as some positive changes in how Japanese companies are being run .
• 2:42
  Even Real Estate is holding its ground , with investors flocking to the stability of data centers and industrial properties .
• 2:51
  On the economic front , we are dealing with a bit of a mixed bag , often called a Kshaped economy .
• 2:57
  Inflation , measured by the PCE , came in at threepointeight percent , which is a threeyear high .
• 3:03
  However , traders are feeling optimistic .
• 3:06
  They believe the pending peace deal in the Middle East will lower energy costs , allowing our new Fed Chair , Kevin Warsh , to keep interest rates steady between threeandahalf and threeandthreequarters percent instead of raising them further .
• 3:20
  We also saw that firstquarter growth was revised down to onepointsix percent , which signals a soft landing for the economy and has helped stabilize the 10year Treasury yield at fourpointfortyfive percent .
• 3:33
  Along with Dell's huge day , we saw Microsoft and Broadcom both rise about three percent as they remain pillars of the AI world .
• 3:42
  Costco , however , took a slight dip today as investors moved money out of defensive stocks and into more aggressive growth companies .
• 3:51
  So , what should you be doing with your money right now ?
• 3:54
  First , I recommend being overweight in AI infrastructure and legacy tech .
• 3:59
  The Dell moment proves that we are in a capitalintensive phase of AI .
• 4:04
  Instead of just picking one stock , you might look at the Technology Select Sector SPDR , XLK , or the VanEck Semiconductor ETF , SMH .
• 4:14
  These give you broad exposure to the firms building the servers and networking we need .
• 4:20
  Second , consider a geographic pivot toward developed international markets .
• 4:24
  The VEA ETF offers a cheaper alternative to U.S.
• 4:28
  stocks with great momentum from the Korean memory chip trade .
• 4:32
  For a tactical hedge , keep an eye on longduration bonds like the iShares 20plus Year Treasury Bond ETF , or TLT .
• 4:40
  If that ceasefire is finalized , inflation expectations could drop , which would be a huge boost for bonds .
• 4:47
  Finally , for diversification , gold is looking interesting .
• 4:52
  SPDR Gold Shares , or GLD , has pulled back to around 4,550 dollars an ounce .
• 4:59
  This could be a great buy the dip opportunity to hedge against any future inflation waves .
• 5:05
  That is it for this update of Spy Trader .
• 5:08
  I am Sunny Sideup , wishing you a fantastic weekend and happy trading .