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Record Highs and Sticky Inflation: Navigating the Market Surge · The SPY Trader

• 0:00
  Hello everyone and welcome back to Spy Trader !
• 0:03
  I am your host , Sunny Sideup , and I am so glad you could join me for our afternoon market wrap .
• 0:09
  It is currently 2:30 pm on Friday , May 22nd , 2026 , and the sun is shining here on the Pacific Coast , much like it is on Wall Street today .
• 0:21
  We are wrapping up a historic week , friends .
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  The Dow Jones Industrial Average just set a brand new record close of 50,579.70 , and the S&P 500 rose to 7,473.47 , marking its eighth winning week in a row .
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  Talk about a hot streak !
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  Now , let us dig into what is actually moving the needle .
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  We are seeing a real tugofwar out there .
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  On one hand , people are feeling optimistic , but on the other , inflation is being quite the uninvited guest Our latest inflation data shows Core PCE reaccelerating to an annualized 4.3 percent .
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  Because of that , the Federal Reserve is keeping interest rates steady between 3.5 and 3.75 percent .
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  This is putting a lot of pressure on bonds .
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  If you have been holding the iShares 20 plus Year Treasury Bond ETF , also known as TLT , you have felt the sting as yields on the 30year Treasury hit 5.2 percent , levels we haven't seen since 2007 .
• 1:26
  Looking at the sectors , Health Care , through the XLV ETF , was our big winner today , up over one percent as investors look for a bit of a safety net and quality names .
• 1:39
  Tech , via the XLK ETF , is still riding the AI wave , up over one percent itself .
• 1:46
  However , it was not all sunshine .
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  Communication Services was our only decliner as companies like Meta and Alphabet saw some profittaking .
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  Walmart shares also took a seven percent tumble after they warned that high fuel costs and inflation are forcing families to change how they shop , even as they see record revenue .
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  Even Nvidia , which reported a mindblowing 81.6 billion dollars in revenue and a massive twentyfivefold dividend hike , saw its stock stay mostly flat at around 223 dollars .
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  It seems like the market already expected perfection there .
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  So , what should we be doing with our hardearned money ?
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  Here are a few thoughts to keep your portfolio healthy .
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  First , do not ignore our friends overseas .
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  For the first time in five years , international stocks are actually outperforming the U.S.
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  market .
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  Consider moving some of those domestic gains into the Vanguard Total International Stock ETF , ticker VXUS , or the Vanguard FTSE Developed Markets ETF , known as VEA .
• 2:52
  VXUS is up 10 percent this year , which is better than the S&P 500's 8 percent gain .
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  Second , when it comes to bonds , stay short .
• 3:03
  With inflation being sticky and yields rising , longduration bonds like TLT face too much price risk .
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  Instead , look at the T.
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  Rowe Price Ultra ShortTerm Bond ETF , or TBUX , or the iShares 03 Month Treasury Bond ETF , ticker SGOV .
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  TBUX offers a nice 4.1 percent annualized return without the wild price swings .
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  Third , if you want a bit of a hedge against global uncertainty , like those peace talks Secretary Marco Rubio is handling regarding the Strait of Hormuz , keep a little gold in your pocket via the SPDR Gold Shares , or GLD .
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  It is a great insurance policy if oil prices , which are already at 104 dollars a barrel , decide to take another jump .
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  Also , keep an eye on the Vanguard Real Estate ETF , VNQ .
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  It has been doing great because of its exposure to data centers like Equinix that power all that AI growth .
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  Finally , if you are looking at individual stocks , Apple is quietly hitting alltime highs of over 303 dollars .
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  With the big developer conference coming up on June 8th and a new CEO , John Ternus , taking over in September , Apple looks like a stable , longterm choice with a clear growth trajectory .
• 4:23
  That is all for this edition of Spy Trader !
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  I am Sunny Sideup , wishing you a wonderful weekend and happy , healthy trading .
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  See you next time !