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Energy Surges as Tech Takes a Reality Check · The SPY Trader

• 0:00
  Good afternoon , traders !
• 0:02
  I’m Barnaby Bullmarket , and you’re listening to Spy Trader .
• 0:06
  It is 2:30 pm on Monday , August 31st , 2026 , out here on the Pacific Coast .
• 0:13
  We’ve got a lot to unpack today as we wrap up a busy month .
• 0:17
  It has been a bit of a bumpy ride on Wall Street today , with major indices showing some red on the screen .
• 0:24
  The S&P 500 , which we track through the SPY , closed down about zero point three percent at seven thousand six hundred eightysix point fourteen .
• 0:34
  The Dow Jones , or the DIA , took a larger hit , falling zero point seven percent to end at fiftythree thousand one hundred eightysix .
• 0:43
  Even the techheavy Nasdaq100 , our favorite QQQ , dropped zero point five percent .
• 0:50
  The main culprits behind today's dip are rising energy costs and a general sense of fatigue regarding artificial intelligence stocks .
• 0:59
  Looking at the bigger picture , the market is dealing with some heavy news from the Middle East .
• 1:05
  Oil prices have surged past ninety dollars a barrel following U.S.
• 1:09
  military strikes on Iranian rocket launchers in the Strait of Hormuz .
• 1:14
  This geopolitical tension has made Energy the clear leader today .
• 1:19
  The Energy Select Sector SPDR Fund , known as XLE , is up over fortytwo percent yeartodate .
• 1:26
  On the flip side , technology stocks are facing what we call a reality check .
• 1:31
  Even though NVIDIA reported record revenues last week , its stock fell four point six percent today as investors worry about its new reporting structure .
• 1:40
  Apple is also seeing some volatility due to supply chain concerns and a slower rollout of its new AIintegrated hardware .
• 1:49
  Now , let’s talk about the man of the hour , Federal Reserve Chair Kevin Warsh .
• 1:54
  We are officially in the Warsh era , and he’s not pulling any punches .
• 1:58
  Following his hawkish signals at Jackson Hole , it’s looking very likely that we’ll see a rate hike in September to fight that three point four percent inflation .
• 2:07
  This has pushed the tenyear Treasury yield to a multiyear high of four point six eight percent , which is putting a lot of pressure on those highgrowth tech stocks in the QQQ .
• 2:19
  So , what should we do with our money ?
• 2:21
  Given that the market is shifting from AI momentum to geopolitical defense , I have a few recommendations for you .
• 2:27
  First , consider hedging your risk with the Energy Select Sector SPDR Fund , the XLE , or even gold through the SPDR Gold Shares , GLD .
• 2:37
  With oil staying high , energy companies are seeing great margins , and gold offers a safe haven during these conflicts .
• 2:45
  Second , it might be time to shift some focus toward largecap value stocks Look at the Vanguard Value ETF , VTV , or the S&P 500 Value fund , IVE .
• 2:58
  These funds hold steady companies like Procter and Gamble or Chevron that offer reliable dividends when growth stocks are struggling with high interest rates .
• 3:07
  Third , be careful with international markets .
• 3:10
  The Vanguard FTSE Developed Markets ETF , VEA , is a great diversifier , but the energy shock from the Middle East could hit Europe and Asia harder than us here in the States .
• 3:22
  Finally , for those looking for income without too much risk , check out the Vanguard ShortTerm Bond ETF , BSV .
• 3:30
  Avoid the longterm volatility of the TLT for now .
• 3:33
  The BSV lets you capture those higher yields of nearly four point seven percent without worrying too much about price drops if the Fed raises rates next month .
• 3:43
  In summary , the market is in a cautious , correctionary phase .
• 3:48
  It’s a good time to prioritize energy and shortterm bonds while trimming back on tech .
• 3:53
  Stay safe out there and keep your eyes on the charts .
• 3:56
  I’m Barnaby Bullmarket , and this has been Spy Trader .
• 4:00
  See you next time !