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AI 2.0: Anthropic, Earnings, and the Fed · The SPY Trader

• 0:00
  Hello everyone and welcome to another episode of Spy Trader!
• 0:03
  I am your host, Barnaby Bull, and I am so glad you could join me for our afternoon market checkin.
• 0:08
  It is currently 2:30 pm on Monday, October 26th, 2026, here on the Pacific Coast.
• 0:13
  We have a lot of ground to cover today as we kick off what everyone is calling Super Week.
• 0:19
  The markets are showing some real grit today, shaking off last week’s jitters with a healthy dose of cautious optimism.
• 0:27
  Right now, the S&P 500, tracked by the SPY ETF, is up about point seven percent, sitting around 7,677.
• 0:34
  That puts us within striking distance of alltime highs again.
• 0:38
  The Nasdaq, or the QQQ, is really the star of the show, jumping around one percent as artificial intelligence fever catches fire all over again.
• 0:46
  Even the Dow is joining the party, up about 154 points.
• 0:50
  The big story driving the momentum today is the massive IPO filing from Anthropic.
• 0:56
  They will be trading under the ticker ANT, and their numbers are honestly mindboggling, showing revenue growth of thirteen hundred percent year over year.
• 1:05
  This news has breathed new life into the tech sector, specifically the XLK ETF.
• 1:10
  We are seeing investors flock back to the picks and shovels of the AI world, with Nvidia, ticker NVDA, climbing two point five percent today.
• 1:18
  On the flip side, things are a bit gloomy in the healthcare sector, as folks pull money out of defensive plays like the XLV ETF to chase that highgrowth tech.
• 1:27
  We also have to keep an eye on international markets.
• 1:30
  If you have been looking at emerging markets through the VWO ETF, you probably noticed some pain.
• 1:36
  Brazilian stocks, tracked by the EWZ ETF, took a massive thirteen percent dive following their presidential election results.
• 1:43
  It just goes to show how quickly political shifts can impact your portfolio.
• 1:48
  Now, looking at the bigger picture, we are standing on the doorstep of a major Federal Reserve decision.
• 1:54
  Chair Warsh and the FOMC start their twoday meeting tomorrow.
• 1:58
  Most of the smart money is betting on a pause, keeping rates between three point seven five and four percent.
• 2:04
  However, inflation is still being a bit stubborn at three point seven percent, so don't expect the Fed to sound too relaxed just yet.
• 2:11
  This persistence in inflation is keeping the tenyear Treasury yield right at five percent, which is the highest we have seen in decades.
• 2:18
  That high yield is a bit of a headwind for the bond market, specifically the TLT ETF, as it makes borrowing more expensive for those big AI projects we all love.
• 2:27
  Speaking of big projects, we are heading into the heart of earnings season.
• 2:32
  Onethird of the S&P 500 reports this week, including heavyweights like Alphabet and Microsoft this Wednesday, and Amazon on Thursday.
• 2:39
  We are also watching Tesla, ticker TSLA, which surged over five percent today after a big upgrade from Barclays.
• 2:46
  Analysts are getting excited about Robotaxis and SpaceX synergies.
• 2:51
  Meanwhile, Meta is looking to raise a staggering amount of cash—up to ninetyfive billion dollars—for AI infrastructure.
• 2:57
  But it is not all sunshine; Elon Musk gave a stern warning today that rising borrowing costs could be a death sentence for smaller cloud companies.
• 3:06
  So, what should we do with all this information?
• 3:09
  For your core holdings, I recommend focusing on quality growth.
• 3:13
  The Invesco QQQ Trust is a great way to capture this AI 2.0 wave, though you might want to stick with the broader SPY if you are worried about the cloud sector getting too crowded.
• 3:23
  For a more tactical play, Nvidia or the XLK ETF remains the gold standard for benefiting from this massive infrastructure spend.
• 3:30
  If you are feeling a bit nervous about the upcoming election or the conflict in the Middle East keeping oil prices near a hundred dollars a barrel, consider a defensive hedge.
• 3:39
  Gold, tracked by the GLD ETF, is at record highs and serves as a great insurance policy against inflation.
• 3:45
  I would stay cautious on longterm bonds like TLT for now, at least until we see if the Fed turns a bit more friendly on Wednesday.
• 3:52
  And finally, if you want international exposure, maybe lean toward the VXUS ETF instead of concentrated emerging market funds to avoid some of that volatility we are seeing in places like Brazil.
• 4:03
  Thanks for tuning in to Spy Trader.
• 4:05
  Stay smart, stay diversified, and I will see you next time!