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Market Peaks and AI Power: Navigating the 7,700 Milestone · The SPY Trader

• 0:00
  Good morning , everyone !
• 0:02
  I am Sunny Shares , and you are listening to Spy Trader .
• 0:05
  It is currently 6 am on a beautiful Saturday , August 15th , 2026 , here on the Pacific coast .
• 0:13
  Whether you are just waking up or finishing a latenight research session , I am so glad to have you with me .
• 0:19
  We have had a massive week in the markets , and there is a lot to unpack , so let’s get right into it .
• 0:25
  This week , the S&P 500 , which many of you track through the SPY ETF , did something historic .
• 0:33
  It surged to new alltime highs , closing above the 7,700 level for the first time ever .
• 0:39
  It has been a summer of intense volatility , but the bulls really took charge this week .
• 0:45
  Now , you might be asking why the market is cheering when we saw a jobs report on August 7th showing a contraction of 23,000 jobs .
• 0:54
  Well , in the world of finance , sometimes bad news is actually good news .
• 0:59
  Investors are betting that a softening job market means the Federal Reserve , led by Chair Kevin Warsh , will finally hit the pause button on interest rate hikes .
• 1:09
  Right now , rates are sitting between 3.5% and 3.75% , and the market likes that stability .
• 1:18
  Adding to that optimism was the CPI report released on August 12th .
• 1:23
  We saw a modest 0.1 percent monthly increase , which brings the annual inflation rate to 3.4 percent .
• 1:31
  It is not perfect , but it was mild enough to ease fears of a September rate hike .
• 1:36
  The Nasdaq100 , or QQQ , was the big winner of the week , gaining over 5 percent .
• 1:43
  Even though it is still about 1.5 percent below its June peak , the technology sector remains the dominant leader .
• 1:52
  We are seeing staggering numbers in AI infrastructure spending , with 165 billion dollars spent in just the second quarter from Big Tech .
• 2:01
  Companies like Nvidia and Super Micro Computer are reaping the rewards , with Super Micro even forecasting strong revenue into 2027 .
• 2:11
  It was not just tech , though .
• 2:13
  The Energy sector , tracked by the XLE , is up 30 percent so far this year .
• 2:19
  This has been bolstered by geopolitical tensions in the Middle East and the closure of the Strait of Hormuz , which has pushed oil prices into the 92 to 96 dollar per barrel range .
• 2:31
  On the flip side , Real Estate through VNQ remains a laggard because those longterm year Treasury yields are staying at multidecade highs , which pressures borrowing costs .
• 2:43
  We also saw some great individual company stories this week .
• 2:48
  Airbnb , ticker ABNB , had its stock price jump 17 percent after its first earnings beat in three years !
• 2:55
  They are citing efficiency gains from integrated AI .
• 2:59
  Meanwhile , CoreWeave shot up 19 percent after they lifted their capital spending forecast for AI infrastructure .
• 3:06
  But it is not all clear skies ahead .
• 3:09
  You definitely need to keep your eyes on August 19th .
• 3:13
  That is the CUSMA trade deadline where the United States is scheduled to impose 50 percent tariffs on approximately 20 billion dollars of Canadian imports .
• 3:23
  This uncertainty is already weighing on manufacturing stocks and the Canadian market ETF , known as EWC .
• 3:31
  So , how should we position our trades ?
• 3:33
  Here are my top recommendations .
• 3:35
  First , I suggest maintaining broad exposure with a quality tilt using the Vanguard Total Stock Market ETF , or VTI .
• 3:45
  While the techheavy QQQ has been the star , we are seeing more companies join the rally in the industrial and financial sectors .
• 3:53
  VTI captures this broadening participation and offers a safety net if the AI trade undergoes a correction .
• 4:00
  Second , let’s hedge against those geopolitical and inflation risks .
• 4:04
  With the Strait of Hormuz conflict impacting oil and the U.S.
• 4:08
  national debt increasing by 450 billion dollars since July , hard assets are very attractive .
• 4:16
  Gold , or GLD , rose 6 percent last week as central banks diversified away from the dollar .
• 4:23
  It is a crucial hedge right now .
• 4:25
  Finally , consider a defensive position in healthcare with the Health Care Select Sector SPDR Fund , or XLV .
• 4:33
  As the labor market cools and the economy shows uneven growth , healthcare offers a valuation buffer compared to the high prices in tech , while still benefiting from longterm trends .
• 4:45
  And for those looking to stabilize their portfolio while the Fed enters a pause , the iShares Core U.S.
• 4:52
  Aggregate Bond ETF , or AGG , is a reliable choice .
• 4:57
  That is all for this edition of Spy Trader !
• 5:00
  I am Sunny Shares .
• 5:02
  Have a fantastic Saturday , and I will talk to you in a few hours !