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Market Turmoil: Tech Tumbles as Crude Hits $100 · The SPY Trader

• 0:00
  Welcome to the Spy Trader podcast , I am your host , Barnaby Buck .
• 0:04
  It is currently 2:30 pm on Thursday , July 23rd , 2026 , out here on the Pacific coast .
• 0:12
  Thanks for tuning in to our midafternoon update .
• 0:15
  It has been a wild ride on Wall Street today , and not necessarily the kind of ride you enjoy at a theme park .
• 0:22
  We are seeing a significant selloff as investors climb what we call a wall of worry .
• 0:28
  The Nasdaq Composite is leading the retreat , down two point two percent , as the massive trade in Artificial Intelligence faces its first real stress test .
• 0:38
  The S&P 500 , which we track through the SPY ETF , has fallen one point four percent , while the Dow Jones Industrial Average dropped about five hundred and ninetytwo points , or one point one percent .
• 0:52
  The big story today is coming from the tech giants .
• 0:56
  Alphabet , known by the ticker GOOGL , saw its shares tumble seven point one percent .
• 1:02
  Now , here is the kicker : they actually beat revenue and profit estimates .
• 1:06
  However , investors got spooked by their massive fortyfive billion dollar capital expenditure forecast for AI infrastructure .
• 1:14
  People are starting to ask when all this spending will actually turn into profit .
• 1:19
  We saw a similar story with Tesla , ticker TSLA , which crashed today following an earnings miss and narrowing margins .
• 1:28
  Analysts are pointing to caution around autonomous driving and that same heavy AI spending as major headwinds .
• 1:35
  Meanwhile , the energy sector is one of the few spots seeing upward movement , though for reasons that make the rest of the market nervous .
• 1:43
  Brent crude oil hit one hundred dollars per barrel today .
• 1:47
  This comes after President Trump threatened major military punishment against Houthi rebels and amid escalating tensions with Iran in the Strait of Hormuz .
• 1:57
  We are also looking at a changing of the guard at the Federal Reserve .
• 2:01
  Next week , on July twentyeighth and twentyninth , the FOMC meets for the first time under new Chair Kevin Warsh .
• 2:09
  With inflation sitting at three point five percent and oil prices spiking , the market is now pricing in a oneinthree chance of a rate hike .
• 2:18
  This is a huge pivot from the rate cuts everyone was hoping for earlier this year .
• 2:23
  The tenyear Treasury yield has climbed to four point sixtysix percent , which is putting even more pressure on stocks .
• 2:31
  So , what is the game plan in this transition regime ?
• 2:34
  First , I recommend looking at a defensive pivot .
• 2:37
  To hedge against geopolitical risk and inflation , consider the Energy Select Sector SPDR Fund , ticker XLE , or SPDR Gold Shares , ticker GLD .
• 2:50
  With oil at a hundred dollars , companies like ExxonMobil and Chevron are positioned to benefit from the supply shock .
• 2:57
  Gold also remains a critical hedge against currency volatility as the new Fed leadership takes over .
• 3:04
  Second , it might be time to reduce your concentration in highspending tech .
• 3:09
  Instead of the techheavy QQQ , you might look at the Invesco SP 500 Equal Weight ETF , ticker RSP .
• 3:18
  This moves you away from the overextended Magnificent Seven and into the broader market where valuations are a bit more reasonable .
• 3:26
  Finally , prepare for interest rates to stay higher for longer .
• 3:30
  If you are worried about the Fed hiking rates next week , longterm bonds are risky .
• 3:35
  You might consider moving to shortduration instruments like the iShares Short Treasury Bond ETF , ticker SHV , or the Financial Select Sector SPDR Fund , ticker XLF .
• 3:48
  Banks like JPMorgan Chase , ticker JPM , often benefit from a widening yield curve .
• 3:54
  While the longterm outlook for AI still looks bright , as seen by Nvidia’s two point three percent gain today , the shortterm path is definitely rocky .
• 4:04
  Stay diversified and keep some cash on the sidelines until we get more clarity from the Fed on July twentyninth .
• 4:11
  This has been Barnaby Buck for Spy Trader .
• 4:14
  Stay safe out there and keep your eyes on the charts .