Latest / The SPY Trader / Resilient Markets: Navigating Rate Hikes and HighTech Wins

Transcript

Resilient Markets: Navigating Rate Hikes and HighTech Wins · The SPY Trader

• 0:00
  Good morning and happy weekend to all our market watchers out there !
• 0:04
  It's 6 am on Saturday , September 26th , 2026 , Pacific time .
• 0:10
  I am your host , Barnaby Bucksworth , and you are listening to Spy Trader .
• 0:14
  We are here to help you make sense of this wild week on Wall Street while you enjoy your morning coffee .
• 0:20
  It has been a shaky few days for the U.S.
• 0:22
  stock market as we navigate the fallout from the Federal Reserve’s midSeptember interest rate hike .
• 0:29
  Led by Chair Kevin Warsh , the Fed moved the federal funds rate up to a range of 3.75 to 4 percent on September 16th .
• 0:38
  While the S&P 500 , or the SPY , is still up about 1.26 percent for the month of September , things have been moving mostly sideways lately .
• 0:48
  Investors are really feeling the pressure from the bond market , where the 10year Treasury yield has climbed to 4.75 percent , its highest point since early last year .
• 0:59
  This makes borrowing more expensive and gives investors a reason to look at bonds instead of stocks .
• 1:05
  Looking at the sectors , Technology remains the frontrunner .
• 1:09
  The XLK sector fund has a median gain of 1.7 percent this month .
• 1:14
  A big part of that is Intel , which has had an incredible run , climbing 38 percent this month thanks to its foundry turnaround and new AI chipsets .
• 1:23
  On the flip side , Energy has been a laggard , with the XLE down nearly 7 percent .
• 1:30
  However , there is a shift happening where big players like Chevron are being upgraded because of their low exposure to Middle East tensions and a massive 15 billion dollar buyback plan .
• 1:41
  In the space sector , we saw a massive milestone on September 24th when Iridium stockholders approved the acquisition by Rocket Lab .
• 1:51
  This is expected to create a nextgeneration space powerhouse .
• 1:56
  Meanwhile , in the retail world , we saw Stitch Fix shares tumble over 21 percent this week , signaling that midtolower income households are feeling the pinch of higher interest rates .
• 2:07
  So , what should we do with our portfolios ?
• 2:10
  Right now , I recommend a strategy focused on defensive quality .
• 2:14
  You might want to increase exposure to broad , stable funds like the iShares Core S&P 500 ETF , known as IVV , or the Vanguard S&P 500 ETF , VOO .
• 2:27
  I also like the Financial Select Sector SPDR Fund , or XLF , because higher interest rates often help bank margins , making them a good hedge .
• 2:37
  For those of you looking at AI , the market is moving past the hype and looking for real value .
• 2:43
  I recommend sticking with the Technology Select Sector SPDR Fund , XLK , but keep a close eye on NVIDIA and Intel .
• 2:52
  These companies are solving the data center bottleneck , which is a trend that should last much longer than this current rate cycle .
• 3:00
  If you are looking for income , be careful with longterm bonds like TLT , which are under a lot of pressure right now .
• 3:07
  Instead , the iShares Core U.S.
• 3:10
  Aggregate Bond ETF , or AGG , is offering a yield near 4.68 percent and is a bit safer in this hiking cycle .
• 3:20
  Finally , for my highrisk growth seekers , Rocket Lab , ticker symbol RKLB , looks like a unique opportunity now that they have vertically integrated with Iridium .
• 3:30
  While September usually has a reputation for being a weak month , the market is showing a lot of resilience .
• 3:36
  The key right now is to be picky .
• 3:39
  Focus on the winners who have strong balance sheets and are leading in AI and space , and be wary of companies struggling with debt .
• 3:47
  That is all for this morning's update on Spy Trader .
• 3:50
  I am Barnaby Bucksworth , wishing you a profitable and peaceful weekend !