Latest / The SPY Trader / AI Harvest and Record Highs: MidMarket Update

Transcript

AI Harvest and Record Highs: MidMarket Update · The SPY Trader

• 0:00
  Hello everyone and welcome back to Spy Trader !
• 0:03
  I am your host , Sunny Shares , and I am so glad you could join me for our midafternoon market checkin .
• 0:10
  It is currently 2:30 pm on Wednesday , August 12th , 2026 , here on the Pacific Coast .
• 0:18
  We have quite a bit of movement to discuss today as we look at a market that is feeling rather optimistic , though still keeping a very close eye on the horizon .
• 0:28
  The big story today is that the S&P 500 and the Nasdaq are both flirting with record highs .
• 0:34
  This is all thanks to what many are calling a Goldilocks inflation report and a massive resurgence in the demand for Artificial Intelligence infrastructure .
• 0:43
  It seems the market is finally seeing the hype turn into real , hard cash .
• 0:48
  Looking at the numbers , the S&P 500 , which we track through the SPY , is up about point three percent to 7,748 .
• 0:58
  The Nasdaq , or the QQQ , is really leading the way today , up over half a percent to 26,588 .
• 1:06
  On the flip side , the Dow Jones is lagging just a tiny bit , down point zero four percent , mostly because folks are worried about energy costs .
• 1:15
  Speaking of energy , the Technology sector is the clear winner today , jumping over one and a half percent .
• 1:22
  This is because AI infrastructure has moved into what we call the harvest phase .
• 1:28
  We are seeing actual earnings reports from hardware suppliers that prove those big tech investments are paying off .
• 1:34
  For example , Super Micro Computer , known as SMCI , saw its stock surge nineteen percent after reporting revenue that literally doubled last quarter .
• 1:45
  Lumentum Holdings also soared fourteen percent because they can't seem to make optical components fast enough for these new AI data centers .
• 1:53
  Now , let us talk about the bigger picture .
• 1:57
  The July Consumer Price Index report came in today showing inflation at a three point four percent annual pace .
• 2:04
  This was exactly what economists expected , which is a huge relief .
• 2:08
  It means Federal Reserve Chair Kevin Warsh might not feel the need to raise rates further this year .
• 2:14
  This is especially important because our last jobs report showed a loss of twentythree thousand jobs , so the focus is shifting toward making sure the economy does not have a bumpy landing .
• 2:27
  We do have some wildcards out there , specifically in the Middle East .
• 2:31
  Tensions in the Strait of Hormuz are keeping oil prices near eightythree dollars a barrel , which is why the Energy sector is staying afloat while Consumer Discretionary stocks are taking a bit of a hit .
• 2:44
  People are feeling the pinch at the gas pump and their pandemic savings are starting to dry up .
• 2:50
  We even saw Air Canada report a net loss of one hundred and seventyeight million dollars despite record revenue , all because their fuel costs are through the roof .
• 3:00
  On a brighter note , gold is having a moment .
• 3:03
  It hit four thousand four hundred and seven dollars an ounce today .
• 3:07
  Barrick Gold reported a fifty percent increase in earnings because of this , proving that when things get uncertain , people still love the shiny stuff .
• 3:16
  So , what should we do with all this information ?
• 3:19
  For core growth , I recommend staying the course with the AI buildout .
• 3:24
  You can look at the Invesco QQQ Trust or the Technology Select Sector SPDR for broad exposure .
• 3:31
  While Nvidia remains a staple , Lumentum is showing great momentum as a value play in that ecosystem .
• 3:38
  If you are worried about the geopolitical risks I mentioned , consider using the SPDR Gold Shares , or GLD , as a hedge .
• 3:47
  Specifically , Barrick Gold is doing a great job turning those high gold prices into actual cash flow .
• 3:54
  For those looking for steady income , now is a great time to look at the Vanguard Real Estate ETF .
• 4:00
  Since inflation is cooling , interest rates might have finally peaked , which makes companies like Realty Income very attractive for their monthly dividends .
• 4:09
  Finally , if you want to diversify , the Vanguard Total Stock Market ETF is a smart move .
• 4:17
  We are starting to see the wealth spread from the big tech giants down to smaller companies , and this is a great way to catch that wave .
• 4:24
  That is all for this update !
• 4:26
  I am Sunny Shares , and this has been Spy Trader .
• 4:30
  Stay smart and stay friendly out there !