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The AI and Energy Barbell: Navigating High Rates and $100 Oil · The SPY Trader

• 0:00
  Hello there , fellow market watchers !
• 0:02
  You are listening to Spy Trader , and I am your host , Penny Pincher .
• 0:06
  It is currently 2:30 pm on Thursday , October 1st , 2026 , here on the sunny Pacific coast .
• 0:14
  We are wrapping up another wild day on Wall Street , and boy , do we have a lot to talk about .
• 0:19
  The market is behaving a little strangely lately — what we analysts call nonnormal — so let's dive into the numbers to see where your money is moving .
• 0:29
  Today , the major indices managed to snap a threeday losing streak , finishing slightly in the green .
• 0:35
  The S&P 500 , which we track via the SPY , rose zero point two percent to close at seven thousand six hundred sixtysix point four five .
• 0:44
  The Nasdaq100 , or the QQQ , gained about zero point one percent , while the Dow Jones Industrial Average was basically flat .
• 0:54
  Now , while those green numbers look nice , the truth is that the market is a bit topheavy .
• 1:00
  We are seeing a huge gap between the winners and the losers .
• 1:04
  The main winners are in artificial intelligence and energy , while the rest of the market is feeling the heat from some very high interest rates .
• 1:12
  Speaking of heat , the tenyear U.S.
• 1:14
  Treasury yield hit a twentyfouryear high of five point three four percent today .
• 1:20
  That is a massive number that puts a lot of pressure on things like real estate and smallcap stocks .
• 1:26
  The Federal Reserve has been busy , too , keeping interest rates in the three point seven five to four percent range to fight sticky inflation .
• 1:35
  Plus , we are all holding our breath for tomorrow's September Nonfarm Payrolls report , where economists are expecting a big slowdown to eightynine thousand jobs .
• 1:46
  If that's not enough , global tensions with Iran have pushed oil prices over one hundred dollars a barrel .
• 1:54
  This supply shock is great for oil company profits , but it is raising fears of stagflation as those costs filter down to consumers .
• 2:02
  Looking at specific companies , the tech sector was the star of the show today , up over one percent .
• 2:09
  Accenture , ticker ACN , shot up fifteen percent after reporting record demand for AI and a bright outlook for 2027 .
• 2:19
  We also saw Nvidia , or NVDA , show its muscles with a massive one hundred fifty billion dollar increase to its share repurchase program .
• 2:28
  On the flip side , Nike , ticker NKE , had a very rough afternoon .
• 2:33
  Even though they beat earnings estimates , their revenue missed the mark and they slashed their fullyear outlook .
• 2:39
  Their shares dropped four percent in postmarket trading to a twelveyear low .
• 2:44
  It seems even the big names are feeling the pinch of a slowing global economy .
• 2:49
  So , what should we do with this information ?
• 2:52
  I am recommending what we call a barbell strategy — balancing highgrowth tech with defensive energy plays .
• 2:59
  For the growth side , look past the usual suspects and check out the picks and shovels of the AI world .
• 3:05
  Instead of just buying one stock , you might look at the Global X Artificial Intelligence and Technology ETF , ticker AIQ .
• 3:15
  Companies like Micron and Synopsys are seeing their revenues quadruple as they build out data centers , and AIQ gives you a great way to capture that growth cycle .
• 3:25
  On the defensive side , you want a hedge against inflation and those high oil prices .
• 3:31
  The SPDR S&P Oil and Gas Exploration and Production ETF , ticker XOP , is a solid choice and recently reached an elevenyear high .
• 3:43
  With oil over a hundred dollars , these energy companies are generating massive free cash flow , which usually leads to higher dividends and buybacks .
• 3:52
  Finally , a word of caution : stay away from retail value traps for now .
• 3:57
  Nike's twentytwo percent revenue crash in China and its revised guidance show that the consumer is getting tired .
• 4:04
  It is probably best to avoid or underweight stocks like NKE until the macro picture clears up .
• 4:12
  If you are looking for yield , utilities like the XLU ETF saw a one point two percent gain today and can be an attractive defensive play .
• 4:21
  That is all for this update !
• 4:23
  Thanks for tuning in to Spy Trader .
• 4:26
  Stay smart , stay cautious , and I will talk to you in a few hours .