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The KShaped Divergence: SpaceX Shocks and Healthcare Highs · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast !
• 0:04
  I am your host , Barnaby Bonds , and I am so glad you have joined me for our late afternoon market wrapup .
• 0:10
  It is currently 4:30 pm on Wednesday , August 5th , 2026 , here in the beautiful Pacific time zone .
• 0:19
  We have got a lot of ground to cover today as the market is looking a bit like a seesaw — one side is way up , and the other is feeling some gravity .
• 0:28
  If you have been looking at your portfolio today , you might be seeing some mixed signals .
• 0:33
  We are calling this a Kshaped divergence .
• 0:35
  Essentially , the oldschool bluechip stocks are having a party while the highflying tech names are taking a bit of a breather .
• 0:42
  Let us look at the scoreboard .
• 0:44
  The Dow Jones Industrial Average , which we track through the DIA ETF , actually hit a brand new alltime record today , closing up half a percent at 54,349.12 .
• 0:58
  On the other hand , the techheavy Nasdaq , or the QQQ , fell about 0.8 percent .
• 1:03
  Our middle ground , the S&P 500 — the SPY — slipped just a tiny bit , down 0.2 percent after hitting its own record yesterday .
• 1:13
  So , what is driving this split ?
• 1:15
  The biggest story today is actually coming from the stars .
• 1:19
  SpaceX released its firstever public earnings report , and it was a bit of a shocker .
• 1:24
  While their revenue grew by a staggering 92 percent , they also reported that they spent a massive 18.4 billion dollars on capital expenditures — mostly for AI infrastructure .
• 1:36
  That sent the stock , ticker symbol SPCX , tumbling over 13 percent .
• 1:42
  Investors are starting to ask when they will see the profit from all this spending .
• 1:46
  Interestingly , though , Nvidia rose 3.4 percent today .
• 1:51
  Why ?
• 1:52
  Because Elon Musk announced that SpaceX is going to use Nvidia processors exclusively for their AI computing .
• 1:59
  It is the classic picks and shovels play — Nvidia is making money even while others are spending a fortune on infrastructure .
• 2:07
  Speaking of making money , the Healthcare sector — represented by the XLV ETF — was the star of the show today .
• 2:15
  Eli Lilly surged nearly 5 percent to over eleven hundred dollars a share after they raised their guidance .
• 2:23
  People just cannot get enough of those weightloss drugs .
• 2:26
  Amgen also hit an alltime high , jumping 5 percent after a fantastic earnings report .
• 2:32
  It seems that while AI is the future , healthcare is very much the profitable present .
• 2:37
  Now , let us talk about the macro picture .
• 2:39
  Last week , the Federal Reserve , led by Chair Kevin Warsh , kept interest rates steady between 3.5 and 3.75 percent .
• 2:48
  But here is the kicker : three officials actually wanted to raise rates .
• 2:53
  Inflation is staying sticky at 3.7 percent , which is way higher than the Feds 2 percent goal .
• 3:00
  Because of this , the bond market is getting a bit nervous .
• 3:03
  The 20year Treasury Bond ETF , the TLT , hit an 18year low today .
• 3:09
  If you are holding longterm bonds , it has been a tough ride as yields have climbed to over 5.2 percent .
• 3:16
  So , what is a trader to do in this environment ?
• 3:19
  Here are a few thoughts from the Spy Trader desk .
• 3:22
  First , if you are looking for a safe place to park some cash with growth potential , look at the Health Care Select Sector SPDR Fund , also known as the XLV .
• 3:32
  With companies like Eli Lilly showing such strong demand , it is a great defensive play .
• 3:38
  Second , let us talk about gold .
• 3:41
  The GLD ETF jumped 4 percent today , crossing over four thousand one hundred dollars an ounce .
• 3:48
  With inflation hanging around and geopolitical tensions making everyone a bit jumpy , gold is reclaiming its status as a premier safe haven .
• 3:57
  If you are worried about currency stability , having some GLD might help you feel more secure .
• 4:03
  On the bond side , we suggest being careful with those longterm bonds like the TLT .
• 4:09
  Instead , maybe look at shorterduration options like the iShares Core U.S.
• 4:14
  Aggregate Bond ETF , or the AGG .
• 4:18
  You can still capture a yield of over 5 percent but with lower risk than the volatile longterm market .
• 4:24
  Finally , when it comes to AI , it is time to be selective .
• 4:28
  We still like the infrastructure side of things .
• 4:31
  As we saw with the SpaceX news , Nvidia is the one collecting the rent while everyone else builds out their systems .
• 4:39
  You can maintain your exposure there through the QQQ , but it might be wise to trim back on companies that are spending billions without immediate net profit .
• 4:49
  That is it for today’s update .
• 4:51
  Remember , the July Jobs Report comes out this Friday , August 7th , and that could change the whole conversation again .
• 4:59
  Until next time , I am Barnaby Bonds .
• 5:01
  Keep your eyes on the charts and your feet on the ground .
• 5:05
  Happy trading !