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Policy Pain: Tariffs Slam Healthcare as Yields Spike · The SPY Trader

• 0:00
  Welcome back to Spy Trader , the only podcast that helps you navigate the choppy waters of the market before the opening bell .
• 0:08
  I'm your host , Barry Cashflow , and it's 6 am on Friday , September 26th , 2025 , Pacific time .
• 0:17
  We are heading into the end of a very difficult week where volatility is high and the market is struggling to hold onto its gains .
• 0:25
  The major indices — the S&P 500 , the Nasdaq Composite , and the Dow — have all closed lower for three consecutive sessions , marking about a one and a half percent pullback in the S&P 500 alone .
• 0:39
  The big story today is uncertainty , driven by clashing economic data and surprising policy proposals .
• 0:47
  Let's dive right into the key headlines .
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  The biggest shocker hitting the tape involves geopolitics and policy .
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  We have new proposed tariffs shaking up multiple sectors , most notably a proposed one hundred percent tariff on imported branded drugs .
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  This immediately sent the Healthcare sector spiraling .
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  Separately , we also saw tariffs proposed for heavy trucks and furniture , which is spooking Industrials .
• 1:14
  On the macroeconomic front , the economy looks too good for the market's liking .
• 1:20
  We just saw the final revision to Q2 GDP shoot up sharply to an annual growth rate of three point eight percent , much higher than earlier estimates .
• 1:30
  Meanwhile , weekly jobless claims fell to two hundred and eighteen thousand , underscoring labor market strength .
• 1:37
  For individual stocks , Intel was the absolute standout , surging nearly nine percent on speculation that Apple might be looking to purchase a stake in the chipmaker .
• 1:48
  Speaking of catalysts , IBM gained over five percent after HSBC announced it was utilizing IBM’s quantum computing technology for a trial in algorithmic bond trading .
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  However , the pain continues for some growth names , with Tesla falling more than four percent and Oracle down over five point five percent , marking its third straight day of declines since earnings .
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  So what does all this mean ?
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  The recent downturn is classic market behavior .
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  Good news for the economy — like the three point eight percent GDP revision — is being interpreted as bad news for the stock market .
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  Why ?
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  Because the strong data weakens the argument for aggressive Federal Reserve rate cuts beyond the two projected by the end of the year .
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  This environment of robust growth combined with persistent inflation is why the 10year Treasury yield is currently sitting at a threeweek high above four point one five percent , creating a major headwind for equities .
• 2:49
  Sector performance clearly reflects the policy shock .
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  Healthcare , tracked by the XLV ETF , was the absolute worst performer , down over one point six percent , directly because of the hundred percent branded drug tariff proposal .
• 3:03
  This level of policy uncertainty forces money managers to flee until clarity returns .
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  Meanwhile , Energy , tracked by XLE , is the leader of the day , up nearly one percent , benefiting from rising crude oil prices and global stability concerns .
• 3:21
  Despite the turbulence , Technology , which is up nearly twenty percent yeartodate , remains the structural market leader .
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  It saw slight profittaking , but the longterm AI story is still intact .
• 3:33
  Given this environment , Barry Cashflow has four key recommendations for your portfolio .
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  First , stay invested in the longterm structural AI trade .
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  Despite the recent dip , maintain core holdings in instruments like the Invesco QQQ Trust or the Technology Select Sector Fund , XLK .
• 3:52
  The longterm growth story remains positive , and current pullbacks can be viewed as buying opportunities for patient capital .
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  Second , focus on idiosyncratic strength .
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  When the macro environment is confusing , look for stocks with powerful , unique , companyspecific news .
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  We recommend further research on Intel and IBM .
• 4:16
  Their significant gains based on major business developments — the Apple speculation for INTC and the quantum computing trial for IBM — show that strong company catalysts can overcome broader market pressure .
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  Third , reduce exposure to tariffsensitive sectors .
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  The proposed one hundred percent tariff on branded drugs creates too much immediate , unquantifiable risk for companies like Eli Lilly or Pfizer .
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  Until policy uncertainty clears , reduce your exposure to the Health Care Select Sector ETF , XLV .
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  Fourth , use volatility to your advantage by hedging .
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  Given the recent rise and instability of the 10year yield , stick to shorttointermediate duration bond funds like the Vanguard Total Bond Market ETF , BND , to mitigate interest rate risk .
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  Also , allocate a small percentage to noncorrelated assets like the SPDR Gold Shares , GLD , as a classic hedge against geopolitical uncertainty and potential inflation reacceleration .
• 5:24
  That’s all for this edition of Spy Trader .
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  Trade smart and we’ll talk soon .