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Micron Hits One Trillion and the New Fed Era · The SPY Trader

• 0:00
  Hello and welcome to the Spy Trader podcast !
• 0:03
  I am your host , Penny Profit , and I am so glad you could join me for our afternoon update .
• 0:09
  It is currently 2:30 pm on Tuesday , May 26th , 2026 , here in the Pacific time zone .
• 0:17
  We have a lot of excitement to cover today as the market continues its wild ride through 2026 .
• 0:23
  If you have been watching your screens today , you know it is a bit of a split story on Wall Street .
• 0:29
  On one hand , we are seeing some incredible recordbreaking highs in the tech world , but on the other , there is some caution in the air due to events overseas and a new face at the Federal Reserve .
• 0:41
  Let us start with the big numbers .
• 0:43
  The S&P 500 , which many of you track through the SPY or VOO ETFs , climbed zero point six one percent to hit a brandnew alltime high of seven thousand five hundred nineteen point twelve .
• 0:57
  The Nasdaq , or QQQ , did even better , gaining over one percent to reach its own record .
• 1:04
  However , it was not a green day for everyone .
• 1:07
  The Dow Jones Industrial Average slipped about a quarter of a percent as industrial and financial companies felt the weight of fluctuating oil prices and uncertainty about interest rates .
• 1:20
  Interestingly , the smaller companies in the Russell 2000 jumped one point eight percent , showing that investors are still hunting for value outside of the giant tech names .
• 1:31
  The biggest story of the day is undoubtedly Micron Technology .
• 1:36
  Micron made history by jumping over nineteen percent today , which officially pushed them into the one trillion dollar market cap club .
• 1:45
  This massive rally happened after analysts at UBS raised their price target significantly and the company revealed that its highbandwidth memory capacity for all of 2026 is already completely sold out .
• 2:00
  When we talk about the picks and shovels of the AI revolution , Micron is holding a very shiny shovel right now .
• 2:08
  Meanwhile , Nvidia continues to be a titan with a five point two trillion dollar valuation , and Apple is closing in on five trillion dollars as investors get excited about its upcoming AI software .
• 2:21
  Now , let us talk about the broader economy .
• 2:24
  We have a new captain at the ship of the Federal Reserve .
• 2:27
  Kevin Warsh was sworn in as Fed Chair just a few days ago , and he is already making his presence felt .
• 2:35
  Chairman Warsh is known for being focused on price stability , and with inflation currently sitting at three point eight percent , the market is starting to believe that interest rates will stay higher for longer .
• 2:46
  In fact , there is now a seventy percent chance we might see another rate hike before the year is out .
• 2:52
  This hawkish shift is putting pressure on the real estate sector and the Vanguard Real Estate ETF , known as VNQ , as mortgage rates reach their highest levels since 2024 .
• 3:05
  We also have to keep an eye on the Middle East .
• 3:08
  Fresh military strikes in the Strait of Hormuz have pushed Brent crude oil back above one hundred dollars a barrel .
• 3:14
  This is making the energy sector , specifically the XLE ETF , very volatile but also very profitable for those holding it .
• 3:22
  So , what should we do with all this information ?
• 3:25
  For your core portfolio , it is a good idea to stay balanced .
• 3:29
  While the big tech gains are great , the rally is a bit narrow .
• 3:34
  You might want to maintain a core holding in the Vanguard Total Stock Market ETF , ticker VTI , but consider adding a little bit of the Invesco S&P 500 Equal Weight ETF , or RSP , to protect yourself in case those big tech giants take a breather .
• 3:51
  In the tech sector , AI infrastructure is still the place to be .
• 3:55
  Even with today's jump , Micron remains a solid choice because of that guaranteed revenue through 2026 .
• 4:03
  You could also look at Broadcom or Cisco for networking exposure within the Technology Select Sector SPDR , known as XLK .
• 4:12
  If you are worried about inflation or the situation in the Middle East , holding some Energy Select Sector SPDR or ExxonMobil can act as a great hedge .
• 4:22
  These companies are generating record cash with oil at one hundred dollars .
• 4:27
  Finally , for those of you looking at bonds , be careful .
• 4:31
  With Chairman Warsh taking a tough stance on inflation , longterm bonds like the TLT ETF are risky right now .
• 4:39
  It might be safer to keep your cash in shortterm treasury ETFs like SHY while we wait for more clarity from the Fed in June .
• 4:47
  That is all for this update !
• 4:48
  I am Penny Profit , and this has been Spy Trader .
• 4:52
  Keep your eyes on the charts and your feet on the ground .
• 4:55
  I will see you in a few hours !