The SPDR S&P 500 ETF Trust (SPY) declined 1.66% on Thursday. The ETF’s performance was impacted by uncertainty about whether the Fed would cut interest rates. Tech stocks dropped on fears that rates may remain high. Although the end of the longest-ever government shutdown raised optimism, market jitters lingered throughout the day.
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Within SPY’s holdings, Energy was the only sector that posted gains today, while the Technology, Consumer Discretionary, Communication Services, and Industrials sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which fell 1.66%, while the tech-heavy Nasdaq 100 (NDX) declined 2.05%.
Key Catalysts That Can Move SPY
Looking ahead, potential catalysts for volatility in the SPY ETF are the release of important US economic data, speeches from several Federal Reserve officials, and the post-government shutdown effects.
Fund Flows and Sentiment
SPY’s 5-day net outflows totaled $3 billion, showing that investors pulled out capital from SPY over the past five trading days. Meanwhile, its three-month average trading volume is 73.98 million shares.
It must be noted that retail sentiment remains neutral, while hedge fund managers have 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 $781.17 for the SPY ETF implies an upside potential of 16.24%.
Currently, SPY’s five holdings with the highest upside potential are Loews (L), Fiserv (FI), DuPont de Nemours (DD), Oracle (ORCL), and Smurfit Westrock (SW).
Meanwhile, its five holdings with the greatest downside potential are Incyte (INCY), Expeditors (EXPD), Tesla (TSLA), Ford (F), and Albemarle (ALB).
Revealingly, SPY’s ETF Smart Score is an eight, implying that this ETF is likely to outperform the broader market.
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