The SPDR S&P 500 ETF Trust (SPY) closed 0.02% lower on Friday. Volatility in the technology sector and concerns about a potential delay in Federal Reserve interest rate cuts impacted the market today.
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Within SPY’s holdings, Energy, Technology, and Real Estate sectors posted gains today, while the Materials, Financials, Communication Services, and Healthcare sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which fell 0.05%, while the tech-heavy Nasdaq 100 (NDX) gained 0.06%.
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.
Also, the release of the minutes from the Federal Open Market Committee’s (FOMC) last meeting will be watched for clues about future interest rate policy.
Importantly, Nvidia’s (NVDA) Q3 earnings report will be a primary focus. As the largest weighting in the S&P 500 and a key player in the AI boom, its performance and outlook could significantly affect market sentiment.
Fund Flows and Sentiment
SPY’s 5-day net outflows totaled $4 billion, showing that investors pulled out capital from SPY over the past five trading days. Meanwhile, its three-month average trading volume is 74.01 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 $795.95 for the SPY ETF implies an upside potential of 18.46%.
Currently, SPY’s five holdings with the highest upside potential are Loews (L), Fiserv (FI), Oracle (ORCL), DuPont de Nemours (DD), and Moderna (MRNA).
Meanwhile, its five holdings with the greatest downside potential are Albemarle (ALB), Incyte (INCY), Expeditors (EXPD), Ford (F), and Paramount Skydance (PSKY).
Revealingly, SPY’s ETF Smart Score is an eight, implying that this ETF is likely to outperform the broader market.
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