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Dow Hits Records as AI Trade Cools · The SPY Trader

• 0:00
  Hello everyone and welcome back to another episode of the Spy Trader podcast !
• 0:05
  I am your host , Sunny Shares , and I am so glad you could join me today for our afternoon market checkin .
• 0:11
  It is currently 2:30 pm on Thursday , July 2nd , 2026 , here on the Pacific coast .
• 0:19
  We are heading into a holidayshortened week with the markets closed tomorrow for Independence Day , but the action on Wall Street is anything but quiet .
• 0:29
  It has been a day of two very different stories depending on where you look in your portfolio .
• 0:34
  We are seeing a significant divergence today .
• 0:37
  On one hand , the Dow Jones Industrial Average is celebrating , hitting a brandnew record high of 52,900.07 , up over one percent .
• 0:49
  On the other hand , the techheavy Nasdaq100 , or the QQQ , is having a rough go of it , dropping about one point six percent as the massive artificial intelligence trade we have seen all year finally starts to cool off .
• 1:05
  Meanwhile , the S&P 500 , which we track through the SPY , is sitting virtually flat at 7,483 .
• 1:14
  It is a strange day when seventy percent of stocks are up , but the big tech names are heavy enough to keep the broad index from moving higher .
• 1:22
  Taking a look at the sectors , the winners are clearly the banks and the builders .
• 1:27
  Financials , which you can track through the XLF , and Industrials , the XLI , are leading the pack .
• 1:33
  It looks like investors are rotating into value and looking for stability .
• 1:38
  However , the technology sector , the XLK , is dragging its feet .
• 1:43
  Semiconductor favorites like Nvidia and AMD are pulling back after an incredible first half of the year .
• 1:50
  We are also seeing Real Estate , via the VNQ , take a hit because treasury yields are climbing again .
• 1:57
  On the news front , there is a bit of a chill in the AI space .
• 2:01
  Meta Platforms announced a plan to sell access to its massive AI computing power , which has people worried about an AI capacity glut .
• 2:11
  This sent shockwaves through companies that build the infrastructure , like Micron and AMD .
• 2:17
  But it is not all bad news for tech fans !
• 2:20
  Rivian , the electric vehicle maker , is a huge bright spot today .
• 2:25
  Their stock jumped over eight percent after they beat their delivery targets and raised their outlook for the rest of the year .
• 2:32
  We also saw some great strength in cybersecurity with companies like Tenable and Qualys as businesses keep spending big to defend against AIdriven threats .
• 2:42
  Now , why is this all happening ?
• 2:44
  Well , the economy is sending some mixed signals .
• 2:47
  The June Jobs Report just came out , and it was a bit of a letdown .
• 2:51
  We only added fiftyseven thousand jobs , which is way below the one hundred and fifteen thousand that experts were expecting .
• 2:59
  Normally , a weak jobs report might make the Federal Reserve want to cut interest rates , but the new Fed Chair , Kevin Warsh , is sticking to his guns .
• 3:09
  He is focused on the fact that inflation is still sticky at nearly three and a half percent .
• 3:15
  Because of this , the market is actually starting to bet on a rate hike as soon as September .
• 3:20
  This has pushed the 10year Treasury yield up to four point four nine percent , which acts like a ceiling for those highgrowth tech stocks .
• 3:28
  So , what should we be doing with our money ?
• 3:31
  First , it might be time for a strategic sector rotation .
• 3:36
  If you have had big gains in tech , consider moving some of that into the Financial Select Sector SPDR Fund , or XLF .
• 3:44
  Big banks like JPMorgan and Goldman Sachs often do well when interest rates stay higher for longer .
• 3:50
  Second , let's talk about defense .
• 3:53
  Gold is up today to over four thousand dollars an ounce .
• 3:57
  Using the SPDR Gold Shares , or GLD , is a classic way to hedge against inflation and global uncertainty .
• 4:05
  For those of you who still want to play the AI theme , try to be picky .
• 4:09
  Instead of broad tech , look at the physical infrastructure needed to run AI , like power and cooling .
• 4:15
  The iShares U.S.
• 4:16
  Infrastructure ETF , IFRA , or a stock like Vertiv , which specializes in data center cooling , are interesting options right now .
• 4:25
  Finally , for your cash and bonds , keep it short .
• 4:28
  I would recommend the iShares zero to three month Treasury Bond ETF , known as SGOV .
• 4:35
  As long as Chair Warsh is talking about rate hikes , longterm bonds are risky , but these shortterm funds offer a nice , safe yield .
• 4:45
  That is all for today's update .
• 4:47
  I hope you all have a wonderful and safe Independence Day weekend with your friends and family .
• 4:53
  This is Sunny Shares from Spy Trader , signing off !