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Transcript

AI Reality Check: Navigating the Market’s Show Me the Money Phase · The SPY Trader

• 0:00
  Good morning and happy Friday , traders !
• 0:02
  It is 5 am on Friday , February 6th , 2026 , here on the West Coast , and you are listening to Spy Trader .
• 0:10
  I am your host , Sunny Sideup , coming to you with the latest scoop on this wild market ride .
• 0:15
  Grab your coffee because we have a lot to unpack .
• 0:18
  The vibe in the market has definitely shifted .
• 0:21
  After the S&P 500 hit that massive 7,000 milestone in January , we are now dealing with some serious volatility .
• 0:30
  Yesterday was what folks are calling the Thursday Slaughter , with the Nasdaq dropping 1.6 percent and the S&P 500 down 1.2 percent .
• 0:40
  Tech stocks , which were the heroes of 2025 , are now the biggest laggards , with the Technology Select Sector SPDR Fund , or XLK , down about 4 percent for the year so far .
• 0:54
  The big news driving this is coming from the tech giants .
• 0:58
  Amazon shares tanked 11 percent in afterhours trading after they announced a mindblowing 2026 capital expenditure plan of 200 billion dollars for AI data centers .
• 1:10
  Alphabet is in a similar boat , forecasting spending between 175 and 185 billion dollars .
• 1:18
  Investors are starting to ask , When do we see the return on all this spending ?
• 1:24
  Even the semiconductor darlings are feeling it ; AMD dropped 17 percent this week , and Nvidia slipped as well .
• 1:32
  On the macro side , it is a bit of a mess with a partial federal government shutdown delaying our January jobs report .
• 1:39
  Plus , we have the Warsh Jitters .
• 1:42
  President Trump nominated Kevin Warsh to take over the Fed in May , leaving everyone wondering if we will see aggressive rate cuts or a more hawkish stance on our 2.7 percent inflation .
• 1:54
  On a brighter note , we have a new trade deal with India that is boosting industrials and energy , and Eli Lilly is back in the trilliondollar club thanks to its weightloss drugs .
• 2:05
  So , what is the game plan ?
• 2:07
  We are moving into a Show Me the Money phase for AI .
• 2:10
  Instead of just betting on those spending the most , we are looking at who provides the power .
• 2:16
  First , I like the Vanguard Total Stock Market ETF , ticker VTI .
• 2:22
  Since the techheavy QQQ is struggling , VTI gives you a broader mix of mid and smallcap value stocks that are actually doing quite well right now .
• 2:31
  Second , look at the Energy Select Sector SPDR Fund , or XLE .
• 2:36
  With companies like ExxonMobil or Chevron , you are getting a backdoor play on AI because those massive data centers need huge amounts of power .
• 2:45
  Third , for safety during this government shutdown and Fed transition , I like SPDR Gold Shares , ticker GLD .
• 2:53
  Gold is a classic hedge when things get weird .
• 2:57
  Finally , if you have a longterm view , keep an eye on the tech sector dip .
• 3:01
  If the XLK fund continues to drop toward a 10 percent correction , it might be a great time to pick up some Nvidia at a discount .
• 3:09
  That is all for this morning's update .
• 3:12
  Stay frosty out there and remember , the market is a marathon , not a sprint .
• 3:17
  I will see you back here in a few hours for the next update on Spy Trader !