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Navigating the September Squeeze: Jobs, Rates, and Defensive Plays · The SPY Trader

• 0:00
  Hello and welcome to another episode of Spy Trader !
• 0:03
  I am your host , Barnaby Bull , and it is 2:30 pm on Friday , September 4th , 2026 , here on the Pacific coast .
• 0:12
  It is great to have you with us as we wrap up the first week of September .
• 0:16
  We are seeing some interesting movements in the markets today , so let us jump right into the heart of the action .
• 0:22
  After a fantastic run in August , the stock market is hitting a bit of a speed bump today .
• 0:28
  It is one of those classic good news is bad news scenarios .
• 0:32
  The S&P 500 is currently down about 0.4 percent , trading near 7,718 , while the Nasdaq has slipped 0.3 percent to 26,506 .
• 0:46
  Even the blue chips in the Dow Jones Industrial Average are feeling the pressure , down 0.5 percent at 53,414 .
• 0:55
  The big story today is the August Jobs Report .
• 0:59
  It turns out the U.S.
• 1:00
  added 162,000 jobs , which sounds great until you realize the experts only expected 55,000 .
• 1:09
  This economic strength is actually scaring investors because it gives the Federal Reserve more reason to keep interest rates high .
• 1:17
  As a result , the 10year Treasury yield has climbed toward 4.77 percent , which makes borrowing more expensive and puts a squeeze on those highflying tech stocks .
• 1:29
  Looking at the bigger picture , we are now firmly in the Warsh era of the Federal Reserve .
• 1:34
  Chair Kevin Warsh has been very clear that inflation trends have not improved as much as he would like .
• 1:40
  With headline inflation sitting at 3.4 percent , everyone is looking toward the September 11th inflation report as the next big signal .
• 1:50
  Right now , there is about a 50 percent chance we will see another rate hike at the Fed meeting on September 15th .
• 1:58
  In the tech world , Nvidia recently reported a mindblowing 96.2 billion dollars in revenue , but the stock is mostly moving sideways as people wonder if the artificial intelligence boom is starting to level off .
• 2:12
  On the bright side , Microsoft and Alphabet are finally seeing their AI investments turn into real cash , with Google Cloud revenue soaring 82 percent last quarter .
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  However , not everyone is winning .
• 2:26
  Lululemon saw its stock drop after cutting guidance because middleclass shoppers are tightening their belts , and Nike is leading the Dow lower today due to cooling demand and trade tensions .
• 2:38
  So , how should you navigate these choppy waters ?
• 2:42
  Since September is historically a bit of a tough month for stocks , I am recommending a Quality and Income approach .
• 2:49
  First , for your core portfolio , stick with reliable broad market funds like the Vanguard S&P 500 ETF , ticker symbol VOO , or the iShares Core S&P 500 ETF , ticker symbol IVV .
• 3:04
  These offer safety through diversification while we wait for the Fed to make its move .
• 3:09
  For a more tactical play , I really like the Health Care Select Sector SPDR Fund , or XLV .
• 3:17
  Healthcare is a great defensive hedge , and companies like UnitedHealth Group and Eli Lilly offer stable earnings that do not jump around as much when interest rates change .
• 3:28
  I also recommend looking at the Financial Select Sector SPDR Fund , known as XLF , because higher rates can actually help big banks like JPMorgan Chase grow their margins .
• 3:41
  If you are looking for yield , the iShares 20 plus Year Treasury Bond ETF , or TLT , is a great way to lock in these current high yields near 4.8 percent .
• 3:52
  And for those worried about geopolitical risks in the Middle East , SPDR Gold Shares , ticker symbol GLD , remains an essential chaos hedge with gold trading near 4,520 dollars an ounce .
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  Finally , if you are looking for growth at a reasonable price , Alphabet and Amazon appear to be the clearest buys among the tech giants .
• 4:14
  Alphabet is trading at a relatively low valuation despite its massive cloud growth .
• 4:20
  If you prefer a basket of tech , you can use the Invesco QQQ Trust , but I suggest buying in slowly over time to manage the current volatility .
• 4:29
  That is all for this afternoon's update .
• 4:31
  Stay disciplined , keep an eye on those yields , and I will see you next time on Spy Trader !