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S&P 7,000 and the Fed: Navigating High Stakes Earnings · The SPY Trader

• 0:00
  Hey everyone !
• 0:01
  I am your host , Benny Barnacle , and you are listening to Spy Trader .
• 0:05
  It is 8:46 am on Wednesday , January 28th , 2026 , out here on the Pacific coast .
• 0:13
  We have a massive day ahead of us , so let's dive right in .
• 0:17
  The stock market is currently in a waitandsee mood , but there is definitely some optimism in the air .
• 0:24
  The S&P 500 , which many of us track through the SPY ETF , recently crossed the historic seventhousand threshold for the first time .
• 0:33
  However , the market is a bit split today .
• 0:36
  Technology is leading the charge thanks to an encouraging revenue forecast from ASML , which has pushed Nvidia up one point seven percent .
• 0:45
  On the other hand , healthcare is the primary laggard after a big selloff in UnitedHealth dragged down the Dow .
• 0:53
  Meanwhile , energy and utilities are showing strength as a winter storm pushes crude oil toward sixtyseven dollars a barrel .
• 1:01
  The big news everyone is waiting for is the Federal Reserve decision at 2:00 PM Eastern .
• 1:08
  Markets are almost certain the Fed will hold interest rates steady between three point five and three point seven five percent .
• 1:16
  While inflation has dropped to two point seven percent , it is still above that two percent target .
• 1:22
  We are also keeping an eye on some political tension , including DOJ investigations into Fed Chair Jerome Powell , which has helped push the U.S.
• 1:32
  Dollar Index to a fouryear low .
• 1:34
  This afternoon is also huge for earnings .
• 1:38
  Microsoft and Meta report after the bell , and everyone is looking at their combined four hundred seventyfive billion dollar investment in AI infrastructure .
• 1:48
  Tesla also reports today , with investors looking for updates on the Optimus robot and Full SelfDriving milestones .
• 1:56
  Apple follows them tomorrow with news on the iPhone 17 .
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  So , how should we trade this ?
• 2:02
  First , because the S&P 500 is trading at a high valuation of twentytwo point one times earnings , you might be overconcentrated in tech .
• 2:11
  Consider rebalancing into the Invesco S&P 500 Equal Weight ETF , ticker RSP , to reduce that risk .
• 2:20
  If you want a shortterm hedge against a tech miss , look at the ProShares Short QQQ , ticker PSQ .
• 2:27
  Second , there is a value opportunity in healthcare .
• 2:30
  While the sector is down , Elevance Health , ticker ELV , has already shown a four point nine percent recovery today .
• 2:39
  It is a great example of a highquality company in an oversold sector .
• 2:44
  Lastly , with the tenyear Treasury yield at four point two six percent , it is a good time to look at the iShares twentyplus Year Treasury Bond ETF , ticker TLT , to lock in some yield before rates eventually move lower .
• 2:58
  For the rest of the day , keep an eye on the Fed press conference at twothirty and watch if smallcaps in the IWM ETF outpace the SPY .
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  That would be a great sign of a healthy , broadening market .
• 3:10
  I am Benny Barnacle , thanks for tuning in !