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Jackson Hole Jitters: Navigating the Fed’s Hawkish Turn · The SPY Trader

• 0:00
  Hello everyone , and welcome to another session of Spy Trader !
• 0:04
  It is currently 2:30 pm on Friday , August 28th , 2026 , here on the Pacific coast .
• 0:11
  I am your host , Sunny Sideup , and I am so glad you could join me as we break down a very busy day on Wall Street .
• 0:19
  We are heading into the weekend with a lot to think about after a major speech from the new Fed Chair , Kevin Warsh , at Jackson Hole .
• 0:27
  The market is currently navigating a bit of a tugofwar between some incredible tech earnings and a central bank that sounds like it is ready to get tough on inflation .
• 0:37
  Today , the S&P 500 , which many of you track through the SPY or VOO ETFs , closed near 7,711.76 .
• 0:48
  That is a slight drop of about 0.2 percent for the day , though we are still up nearly 3 percent for the month of August .
• 0:56
  The Nasdaq , or the QQQ , took a harder hit , closing down 0.4 percent at 26,402.42 .
• 1:05
  Meanwhile , the Dow Jones held steady , supported by companies like Salesforce , which has had an incredible week .
• 1:12
  The big story today was definitely Fed Chair Kevin Warsh .
• 1:16
  He gave a very firm , or hawkish , speech , signaling that the Fed is not satisfied with inflation .
• 1:24
  With the PCE Price Index stuck at 3.7 percent , which is well above the 2 percent goal , there is now a 60 percent chance we will see another rate hike in September .
• 1:35
  This caused the 10year Treasury yield to climb to 4.72 percent , which generally makes stocks feel a bit more expensive .
• 1:45
  Looking at specific companies , NVIDIA reported massive revenue of over 96 billion dollars earlier this week , but its stock actually dipped 4 percent today as investors worried about rising rates .
• 1:58
  Marvell Technology also fell 10 percent after its earnings report .
• 2:02
  On the brighter side , Salesforce , ticker CRM , has jumped 22 percent this week because their new Agentic AI is really taking off .
• 2:13
  Apple is also making moves , raising prices for Apple TV plus to about 15 dollars a month .
• 2:20
  Unfortunately , PayPal shares plummeted 13 percent today after a big takeover bid was abandoned , leaving them to navigate some tough competition alone .
• 2:30
  So , what should we do with all this information ?
• 2:33
  First , I recommend looking at some tactical defensive positions in the Financial Select Sector SPDR Fund , also known as XLF .
• 2:43
  Because Chair Warsh is signaling higher interest rates for longer , big banks like JPMorgan Chase tend to benefit from better profit margins .
• 2:53
  Second , do not let today’s dip in tech scare you away from quality .
• 2:58
  I suggest using the current volatility to build positions in the Vanguard S&P 500 ETF or the Invesco QQQ Trust .
• 3:08
  You might consider setting limit orders about 5 to 7 percent below current prices to catch companies like NVIDIA or Salesforce on a discount .
• 3:16
  Third , be very careful with longterm bonds .
• 3:19
  The iShares 20 plus Year Treasury Bond ETF , or TLT , is very sensitive right now .
• 3:26
  If you want safety while waiting for the Fed’s September decision , I would favor the iShares 1 to 3 Year Treasury Bond ETF , known as SHY , which is offering yields near 5 percent with much less risk .
• 3:39
  Finally , keep an eye on gold .
• 3:42
  With inflation remaining sticky and some global tensions in the news , keeping a small 5 percent allocation in the SPDR Gold Shares , or GLD , is a smart way to protect your portfolio against a bumpy economic landing .
• 3:57
  That is all for today's update .
• 3:59
  Stay frosty out there , keep your head in the game , and have a wonderful weekend !