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Q4 Rally Reloaded: Tech Surges as Labor Markets Cool · The SPY Trader

• 0:00
  Good morning , early birds and market watchers !
• 0:03
  It is 6 am on Saturday , October 3rd , 2026 , here on the Pacific coast .
• 0:10
  I am your host , Sunny Sideup , and you are listening to Spy Trader .
• 0:14
  We have just wrapped up the first week of October , and after a historically rocky September , it feels like the market is finally shaking off the dust and reloading for a big fourthquarter rally .
• 0:26
  We have seen some incredible volatility over the last 48 hours , but the bulls seem to be back in the driver's seat .
• 0:34
  Let's dive into the numbers from Friday , October 2nd .
• 0:38
  The S&P 500 , tracked by the SPY , climbed 0.7 percent to close at 7,722.72 .
• 0:48
  We are now sitting less than 1 percent away from a new alltime high .
• 0:53
  The Nasdaq , or QQQ , really stole the show with a 1.2 percent gain , powered by a massive resurgence in artificial intelligence names .
• 1:03
  The Dow Jones , or DIA , saw more modest gains of 0.5 percent as industrial and financial stocks dragged slightly behind the tech giants .
• 1:12
  The biggest headline this week was the September Jobs Report .
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  The U.S.
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  added only 29,000 jobs , which was significantly lower than the 85,000 to 90,000 analysts were looking for While that sounds like bad news , the market treated it as a win because it suggests the labor market is cooling enough to keep the Federal Reserve from hiking interest rates again .
• 1:37
  In fact , the probability of an October rate hike plummeted from 64 percent down to just 22 percent .
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  We also saw the 10year Treasury yield , which we track through the TLT , hit a multidecade high of 5.34 percent on Thursday before cooling off to 5.18 percent after the jobs data came out .
• 1:59
  Looking at specific companies , Nvidia , ticker NVDA , is the talk of the town .
• 2:06
  They hit a new alltime high and are approaching a 6 trillion dollar market cap .
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  This follows a massive 150 billion dollar share buyback program and a strategic partnership with firms like BlackRock to mobilize 500 billion dollars for AI infrastructure .
• 2:24
  Apple , or AAPL , is also picking up steam ahead of a rumored October 13th event where we expect to see a new homeOS smart hub and the highly anticipated foldable iPhone Duo .
• 2:38
  On the flip side , it was a tough week for Nike , ticker NKE , which plunged to 13year lows after slashing its guidance .
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  It is a clear reminder of the struggles in traditional retail right now .
• 2:50
  In the energy sector , represented by the XLE , things were volatile due to tensions in the Middle East .
• 2:57
  However , prices stabilized after G7 nations agreed to release 100 million barrels of emergency oil reserves .
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  So , what does this mean for your portfolio ?
• 3:09
  For your core broad market exposure , I recommend increasing your position in the Invesco QQQ Trust .
• 3:16
  With yields retreating and the AI trade accelerating , largecap tech is perfectly positioned to lead a yearend rally .
• 3:24
  For a geopolitical hedge , it is wise to hold a tactical position in SPDR Gold Shares , or GLD , or the Energy Select Sector SPDR , XLE .
• 3:36
  With thousands of U.S.
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  troops recently deployed to the Middle East , these act as an insurance policy against further escalation .
• 3:44
  In the fixedincome space , you might want to lock in these high yields via the iShares 20 plus Year Treasury Bond ETF , also known as TLT .
• 3:54
  If that 5.3 percent yield holds as the cycle top , bond prices will rise as the economy softens .
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  Finally , for individual stocks , keep an eye on Nvidia for momentum and Airbnb , ticker ABNB , for a potential value recovery .
• 4:11
  I would suggest avoiding Nike for the time being until we see a clear bottom .
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  That is all for this morning's update .
• 4:18
  Stay sharp , stay friendly , and let's get ready for a great Q4 .
• 4:23
  This is Sunny Sideup , signing off for Spy Trader !