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AI Sparks and Dow Landmarks: A Tale of Two Halves · The SPY Trader

• 0:00
  Good morning and happy Saturday , traders !
• 0:02
  It's 6 am on Saturday , July 11th , 2026 , out here on the Pacific coast .
• 0:09
  I am your host , Barnaby Barnacles , and you are listening to Spy Trader , your frequent checkin on the pulse of the market .
• 0:17
  I hope you have your favorite mug filled with something warm because we have quite a week to wrap up .
• 0:22
  It was really a tale of two halves this week .
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  We started with some jitters on Wednesday when tensions in the Middle East caused a big riskoff move , but by Friday , the AI trade came roaring back to save the day .
• 0:37
  The S&P 500 , which we track through the SPY , finished the week up about one point three percent , closing at 7,575.39 .
• 0:48
  That is just a stones throw away from the record we saw in June .
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  The Nasdaq , or the QQQ , also ended strong , while the Dow Jones crossed the massive 52,000 milestone earlier in the week .
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  Looking at the sectors , technology and communications were the big winners .
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  Meta Platforms , or META , was the absolute star on Friday , jumping six percent .
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  They unveiled a new AI model called Muse Spark 1.1 and announced massive plans for AI computing power .
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  On the flip side , healthcare and consumer staples struggled .
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  When oil prices spiked midweek to over 78 dollars a barrel , people got worried about transportation costs hitting the margins of those everyday staple companies .
• 1:34
  In the world of chips , we saw a huge debut from South Korean maker SK Hynix , which surged thirteen percent on its first day .
• 1:42
  This brought a lot of excitement to the semiconductor space , though we saw some folks taking profits on Micron to move into the new kid on the block .
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  Nvidia also had a great Friday , rising four percent on news of their new Vera CPU .
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  Now , it was not all sunshine .
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  Apple filed a major lawsuit against OpenAI , accusing them of taking trade secrets to build their own devices .
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  Meanwhile , Tesla reported a blowout second quarter with over 480,000 deliveries .
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  They are making big moves by clearing out old factory lines to make room for their Optimus robots .
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  On the macro side , Fed Chairman Kevin Warsh is staying cautious because inflation is still a bit sticky , keeping those Treasury yields high .
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  So , what should we be doing with our portfolios ?
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  First , I recommend looking into strategic exposure to physical AI and infrastructure .
• 2:37
  You might consider the Global X Data Center REITS and Digital Infrastructure ETF , ticker VPN , or sticking with Nvidia .
• 2:46
  The market is moving from software into the hardware and power needed to run it .
• 2:52
  Second , it is a good idea to have some core dividend or value stocks for inflation protection .
• 2:58
  The Schwab US Dividend Equity ETF , SCHD , or the Financial Select Sector SPDR , XLF , are great options .
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  If inflation stays hot in next week’s report , these sectors usually hold up better .
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  Finally , consider a hedge against those unpredictable geopolitical spikes .
• 3:19
  The iShares U.S.
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  Treasury Bond ETF , GOVT , or the Vanguard Real Estate ETF , VNQ , can offer a margin of safety if energy prices jump again .
• 3:31
  That is all for this morning's update !
• 3:34
  Keep a close eye on those bank earnings starting this Monday , July 13th , as they will really set the tone for the rest of the month .
• 3:41
  I am Barnaby Barnacles , and this has been Spy Trader .
• 3:45
  Have a wonderful Saturday !