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AI Innovation vs. The Interest Rate Reality · The SPY Trader

• 0:00
  Hello there , fellow market watchers !
• 0:02
  I am Sunny Sideup , and you are listening to Spy Trader .
• 0:06
  It is currently 2:30 pm on Wednesday , September 23rd , 2026 , here in the Pacific time zone .
• 0:15
  We have a lot to unpack today because the market is essentially running on two different tracks .
• 0:21
  On one side , we have got some serious geopolitical tension and rising interest rates , but on the other , we are seeing a massive wave of innovation fueled by a giant artificial intelligence investment cycle .
• 0:34
  Looking at the scoreboard , the S&P 500 , represented by the SPY and VOO ETFs , is trading right around 7,764.64 .
• 0:45
  It is basically flat today but still hovering within half a percent of its alltime high .
• 0:51
  The Nasdaq is the real star , hitting a record high yesterday and sitting at 27,244.28 , up nearly seventeen percent for the year thanks to the rally in semiconductors .
• 1:05
  Meanwhile , the Dow Jones Industrial Average is struggling , down about zero point three six percent today as industrial and financial companies feel the squeeze .
• 1:16
  The big story this week is definitely in the technology sector .
• 1:20
  This past Monday , Advanced Micro Devices , or AMD , officially crossed the one trillion dollar market cap milestone .
• 1:29
  That is huge !
• 1:30
  They jumped nine percent in a single session after showing off new AI server deals with Meta and Microsoft .
• 1:37
  Speaking of Meta , their new Muse AI agent has been a standout performer since its launch earlier this month , quickly becoming the top free app on the App Store .
• 1:47
  But it is not all sunshine and rainbows .
• 1:50
  Financial stocks are under pressure because interest rates are staying higher for longer , which is beginning to squeeze loan demand .
• 1:58
  We also saw earnings from General Mills today which highlighted how persistent inflation is still hitting consumer budgets , though Cintas managed to beat expectations because business services remain resilient .
• 2:10
  On the macro side , Fed Chair Kevin Warsh and the FOMC raised interest rates last week to a range of 3.75 to 4 percent .
• 2:21
  This was the first hike in three years and it is aimed at cooling down that 3.4 percent inflation rate we saw in August .
• 2:29
  This has pushed the 10year Treasury yield right up to that psychological 5 percent mark , which has put a lot of price pressure on longterm bond ETFs like TLT .
• 2:40
  We are also keeping a close eye on New York , where U.S.
• 2:43
  and Iranian officials just had a productive threehour meeting .
• 2:48
  This has helped cool off oil prices for a moment , with Brent crude falling toward 98 dollars a barrel .
• 2:54
  Investors are also anxiously eyeing tomorrow’s big summit between President Trump and Chinese President Xi Jinping .
• 3:01
  So , what should we do with our money in this environment ?
• 3:05
  For aggressive growth , I still like the Invesco QQQ Trust or the Technology Select Sector SPDR , known as XLK .
• 3:15
  Even with people talking about an AI bubble , companies like AMD and Nvidia are delivering tangible revenue growth , with AMD doubling its data center revenue recently .
• 3:27
  Meta is another great example of a company turning AI into a real consumer revenue stream .
• 3:33
  If you want something for a defensive core , look at the Vanguard Total International Stock ETF , ticker VXUS .
• 3:42
  International markets in India and Europe are offering better valuations than U.S.
• 3:47
  tech right now , and you get exposure to essential chip players like ASML and Samsung .
• 3:53
  I also like AutoZone , ticker AZO , which reported strong profits yesterday .
• 3:58
  Consumers are keeping their old cars longer because new car interest rates are so high , giving AutoZone a nice defensive moat .
• 4:06
  For fixed income , check out the WisdomTree Interest Rate Hedged U.S.
• 4:10
  Aggregate Bond Fund , or AGZD .
• 4:14
  Traditional bond funds are losing money as rates go up , but AGZD hedges against those rising rates so you can capture yield without the price drops .
• 4:23
  Finally , for an inflation hedge , gold reached 4,339 dollars an ounce today .
• 4:30
  The SPDR Gold Shares ETF , GLD , remains a preferred haven while those diplomatic efforts in the Middle East remain fragile .
• 4:38
  That is all for this update .
• 4:40
  I am Sunny Sideup , reminding you to stay smart and stay diversified .
• 4:46
  Happy trading !