The SPDR S&P 500 ETF Trust (SPY) gained 0.32% on Friday, backed by strong gains in Amazon (AMZN) stock, which rose about 10% after its earnings report, and some optimism about a trade truce between the U.S. and China.
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Within SPY’s holdings, the Consumer Discretionary, Energy, and Industrial sectors posted gains today, while the Consumer Staples, Utilities, and Materials sectors declined.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which ended 0.26% higher. Also, the tech-heavy Nasdaq 100 (NDX) gained 0.48%.
What Impacted the Market Today?
Positive third-quarter earnings reports from Amazon and Apple (AAPL) boosted the SPY ETF. Amazon’s strong cloud computing growth and Apple’s robust iPhone and services revenue helped offset market concerns over AI capital expenditures from Meta (META) and Microsoft (MSFT).
Looking ahead, the ongoing U.S. government shutdown and the October U.S. jobs report next week could trigger volatility in the SPY ETF.
Fund Flows and Sentiment
SPY’s 5-day net inflows totaled $3 billion, showing that investors put capital in SPY over the past five trading days. Meanwhile, its three-month average trading volume is 74.16 million shares.
It must be noted that retail sentiment remains neutral, while hedge fund managers increased their holdings of the SPY ETF in the last quarter.
SPY’s Price Forecasts and Holdings
According to TipRanks’ unique ETF analyst consensus, which is based on a weighted average of analyst ratings on its holdings, SPY is a Moderate Buy. The Street’s average price target of $766.78 for the SPY ETF implies an upside potential of 12.42%.
Currently, SPY’s five holdings with the highest upside potential are Loews (LOW), Fiserv (FI), Alexandria Real Estate Equities (ARE), Smurfit Westrock (SW), and GoDaddy (GDDY).
Meanwhile, its five holdings with the greatest downside potential are Palantir (PLTR), Paramount Skydance (PSKY), Intel (INTC), Tesla (TSLA), and Super Micro Computer (SMCI).
Revealingly, SPY’s ETF Smart Score is eight, implying that this ETF is likely to outperform the broader market.
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