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Tech Rockets Higher: SpaceX Surge and Tesla Merger Buzz · The SPY Trader

• 0:00
  Hello everyone and welcome back to the Spy Trader podcast!
• 0:03
  I am your host, Penny Profit, and I am so glad you could join me for our midafternoon market update.
• 0:08
  It is 2:30 pm on Wednesday, October 21st, 2026, in the Pacific time zone, and boy, do we have some fireworks in the market today!
• 0:16
  If you are looking at your trading screens right now, you are probably seeing a whole lot of green.
• 0:22
  The United States economy continues to be described as the envy of the world, having significantly outpaced every other developed nation over the last two years.
• 0:32
  As it stands right now, the S&P 500, which many of you track through the VOO or SPY ETFs, is hovering near record levels at approximately 7,757, which is up 0.6 percent on the day.
• 0:43
  But the real star of the show today is the techheavy Nasdaq100, tracked through the QQQ, which is outperforming the broader market with a 1.1 percent gain, reaching a level of 26,702.
• 0:56
  It has been an incredible run, with the S&P 500 rising about 34 percent since the November 2024 election.
• 1:03
  So, what exactly is driving all this excitement?
• 1:06
  We are in the middle of a blockbuster earnings season and a massive catalyst in the technology and aerospace sectors.
• 1:12
  The Technology Select Sector SPDR Fund, or XLK, is our primary engine today.
• 1:17
  Market sentiment is highly bullish following a strongerthanexpected profit report from SpaceX, which has surged nearly 10 percent today.
• 1:26
  This has completely revitalized interest in highgrowth aerospace and AI companies.
• 1:30
  And if that was not enough, Elon Musk dropped a bombshell today by announcing that SpaceX is considering a merger with Tesla.
• 1:37
  This news has sent Tesla shares, ticker TSLA, up 3.6 percent in anticipation of their own earnings report due late today.
• 1:45
  Everyone is also keeping a close eye on NVIDIA, ticker NVDA, which recently authorized a record 150 billion dollar share buyback.
• 1:54
  That is the largest in corporate history!
• 1:57
  While NVIDIA has trailed peers like AMD recently, this massive buyback signals immense confidence in the longevity of the AI buildout.
• 2:05
  We are also looking ahead to Microsoft, ticker MSFT, which reports on October 28th.
• 2:11
  Analysts are expecting 15 percent revenue growth there.
• 2:15
  But it is not just tech!
• 2:16
  The financial sector, tracked by the XLF ETF, is also outperforming.
• 2:22
  We saw strong earnings from Capital One Financial today, with the stock up 3.8 percent.
• 2:27
  Even with the Federal Reserve maintaining interest rates between 4.25 and 4.50 percent, the banks are proving to be resilient.
• 2:34
  We even saw a huge jump in the consumer discretionary space, where Winnebago Industries, ticker WGO, surged over 10 percent after a resilient profit report.
• 2:43
  This tells us that consumer spending on bigticket items is holding up much better than feared.
• 2:49
  Now, for those of you looking for a little safety, Gold, tracked through the GLD ETF, continues its historic run.
• 2:56
  It is currently trading near 4,150 dollars per ounce, up over 7 dollars today alone.
• 3:01
  Investors are using gold as a hedge because while headline inflation has moderated to 2.4 percent, core inflation remains a bit sticky.
• 3:10
  This stickiness is keeping the iShares 20 plus Year Treasury Bond ETF, ticker TLT, under some pressure as longterm yields stay elevated.
• 3:19
  So, what are the takeaways for your portfolio?
• 3:22
  If you want to lean into this momentum, I recommend the Invesco QQQ Trust.
• 3:27
  With the AI trade entering a new phase focused on integrated hardware and aerospace like SpaceX and Tesla, QQQ gives you that concentrated exposure.
• 3:37
  For a more balanced approach, I like the Vanguard S&P 500 ETF, or VOO.
• 3:41
  It is the gold standard for capturing this broad economic growth, and it has a lower expense ratio than SPY.
• 3:48
  If you are worried about inflation sticking around, keeping some GLD as a strategic hedge is a smart move at these record highs.
• 3:55
  Finally, for a tactical play, look at the Financial Select Sector SPDR, or XLF.
• 4:00
  As we saw with Capital One today, banks are in a sweet spot where defaults are low and margins are healthy.
• 4:06
  That is all for this edition of Spy Trader!
• 4:09
  I am Penny Profit, and I will be back in a few hours with more news you can use.
• 4:13
  Happy trading!