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AI Discipline and the 2026 Market Shift · The SPY Trader

• 0:00
  Hello and welcome to Spy Trader !
• 0:02
  I am your host , Sunny Sideup , and it is a beautiful 4:30 pm on Thursday , May 7th , 2026 , here in sunny Pacific time .
• 0:12
  We have a lot to unpack from today's market action , so let's dive right in .
• 0:17
  The U.S.
• 0:17
  stock market is currently in a fascinating tugofwar .
• 0:21
  While we are seeing recordbreaking highs , there is a bit of a sellthenews vibe today after yesterday's massive rally .
• 0:29
  The S&P 500 , or the SPY , is hovering between 7,337 and 7,377 , while the Nasdaq , tracked by the QQQ , is leading the pack around 25,976 thanks to a powerhouse earnings season .
• 0:47
  However , the Dow Jones is really struggling to stay above that big 50,000 milestone , mostly because industrial heavyweights like Caterpillar and Chevron are dragging their feet .
• 0:59
  The big story right now is how the market is grading artificial intelligence .
• 1:04
  It is no longer enough to just mention AI ; investors want to see discipline .
• 1:09
  Alphabet , or GOOGL , is the star of the week , surging 12 percent after showing strong growth without a spending panic .
• 1:18
  Apple also jumped 5 percent after hitting a whopping 111.2 billion dollars in revenue .
• 1:25
  On the flip side , Microsoft and Meta were actually punished by investors because their AI infrastructure spending is just so massive , with Microsoft expecting a 190 billion dollar bill for 2026 .
• 1:40
  Looking at the broader economy , we are seeing a lowhire , lowfire labor market with unemployment at 4.3 percent .
• 1:49
  The Federal Reserve held interest rates steady at 3.5 to 3.75 percent , but with four members dissenting , it looks like the higherforlonger crowd might be losing their grip .
• 2:01
  Plus , a historic peace memorandum between the U.S.
• 2:04
  and Iran has sent Brent crude oil tumbling down to 97 dollars a barrel , which is helping to cool off those inflation fears .
• 2:13
  So , what should we do with our hardearned money ?
• 2:17
  First , I am looking at Alphabet or the Vanguard Total Stock Market ETF , ticker VTI .
• 2:23
  The market is rewarding companies that grow AI responsibly , and Alphabet’s 28 percent Cloud growth is a great example of that .
• 2:31
  Second , if you are looking for stability , consider the iShares 20 plus Year Treasury Bond ETF , also known as TLT .
• 2:40
  With the Fed likely paused and inflation easing , locking in these yields looks like a smart move .
• 2:47
  Third , keep an eye on the Vanguard Real Estate ETF , or VNQ .
• 2:52
  As oil prices drop , it becomes cheaper to operate buildings , and real estate is primed for a recovery as interest rates stabilize .
• 3:00
  Finally , for the big one , Nvidia .
• 3:03
  Even though it is the market's North Star , it is actually a weak performer this year as companies like Google start building their own chips .
• 3:11
  My advice is to hold and wait for their May 20th earnings report before making any big moves .
• 3:18
  That is all for this afternoon's update .
• 3:20
  Stay smart , stay friendly , and I will see you next time on Spy Trader !