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Riding the AI Wave to Record Highs · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host , Penny Pincher , and I am so glad you could join me for our midafternoon market pulse .
• 0:10
  It is currently 2:30 pm on Tuesday , May 5th , 2026 , here on the Pacific coast .
• 0:17
  If you have been looking at your screens today , you probably see a whole lot of green .
• 0:22
  The market is showing some incredible resilience right now .
• 0:27
  We are hitting new record highs even with all the geopolitical noise and macroeconomic crosswinds blowing our way .
• 0:34
  As of this afternoon , the S&P 500 , or the SPY as we like to call it , rose zero point eight percent today to close at a staggering record of 7,259.22 .
• 0:46
  Not to be outdone , the Nasdaq Composite , tracked by the QQQ , gained a full one percent to reach 25,326.13 .
• 0:57
  This rally is really just a continuation of the momentum we saw in April , which was actually one of the strongest months we have seen in fifteen years , with the S&P 500 surging over ten percent .
• 1:10
  Now , let us dive into what is actually moving the needle today .
• 1:14
  We are seeing a very growthheavy leadership profile in this market .
• 1:17
  The Technology Select Sector SPDR , or XLK , is leading the charge thanks to massive spending on AI infrastructure .
• 1:27
  A huge standout today was Intel .
• 1:30
  INTC surged thirteen percent following reports that Apple might use them for domestic processor production .
• 1:36
  On the flip side , the energy sector , represented by XLE , has been a bit of a rollercoaster because of the conflict in the Middle East .
• 1:45
  While oil prices cooled off today , with Brent crude falling four percent , the Strait of Hormuz remains a major risk factor that we have to keep an eye on .
• 1:56
  In other news , DuPont rallied over eight percent after a great earnings beat , which tells us that advanced manufacturing is still going strong .
• 2:05
  However , it is not all sunshine and roses .
• 2:08
  Health Care and Financials have been lagging behind .
• 2:11
  Pfizer was a rare bright spot there , rising about two percent on its own earnings beat .
• 2:17
  Looking at the big picture , the Federal Reserve is in a bit of a tough spot .
• 2:22
  Back on April 29th , they held interest rates steady between 3.50 and 3.75 percent .
• 2:29
  But here is the kicker : four policymakers dissented .
• 2:33
  That is the most we have seen since 1992 , and it shows there is a real internal debate about inflation , which sat at 3.3 percent in March .
• 2:43
  We are all waiting for the next inflation report on May 12th to see if high energy costs are still pushing those numbers up .
• 2:51
  Speaking of big companies , Apple reported a golden first quarter with over 111 billion dollars in revenue .
• 2:59
  They are growing their services without spending quite as much as Meta or Alphabet , which investors really seem to like .
• 3:06
  And then there is NVIDIA .
• 3:08
  It is now a four trillion dollar company !
• 3:11
  Everyone is circled May 20th on their calendars for NVIDIA's next earnings report because that usually lifts the entire Nasdaq .
• 3:20
  On the sadder side of the tracks , FedEx plunged about nine percent earlier this week as Amazon’s logistics arm continues to squeeze the traditional shipping giants .
• 3:30
  So , what should you be doing with your money in this meltup environment ?
• 3:34
  For your core holdings , I still recommend the Vanguard S&P 500 ETF , known as VOO .
• 3:41
  With earnings growing across almost every sector , keeping fifty to sixty percent of your portfolio here is a smart way to capture this momentum .
• 3:50
  If you are looking for growth , consider a slight overweight position in the Invesco QQQ Trust .
• 3:56
  With the AI buildout in full swing , companies like Apple and Microsoft are proving they can turn that tech into real cash .
• 4:04
  Just be ready for that NVIDIA earnings report later this month .
• 4:07
  Because things are a bit unstable globally , especially with the situation in Iran , it is a good idea to have a buffer .
• 4:15
  I recommend putting five to ten percent into SPDR Gold Shares , or GLD .
• 4:22
  Gold is a classic safe haven when things get rocky .
• 4:25
  You might also look at the iShares 20 plus Year Treasury Bond ETF , or TLT , which would help if the economy slows down and forces the Fed to cut those rates .
• 4:36
  Finally , keep an eye on the Financial Select Sector SPDR , or XLF .
• 4:42
  If we see a change in leadership at the Fed toward a more bankfriendly environment , stocks like JPMorgan Chase could be a great value entry .
• 4:51
  Just a final word of caution : after a huge ten percent gain like we saw in April , the market often takes a month to digest those gains .
• 5:00
  Don't feel like you have to chase the peak .
• 5:03
  If we see a pullback this month , treat it as a chance to get in at a better price .
• 5:08
  That is all for this afternoon !
• 5:10
  Keep your eyes on the charts and your hands on your chips .
• 5:13
  I am Penny Pincher , and this has been Spy Trader .