The SPDR S&P 500 ETF Trust (SPY) was down 0.84% on Tuesday, weighed down by a broad sell-off in technology stocks and investor caution ahead of Nvidia’s (NVDA) earnings report tomorrow. The decline was also driven by fading hopes for future interest rate cuts from the Federal Reserve.
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Within SPY’s holdings, Energy, Healthcare, and Real Estate sectors posted gains today, while the Consumer Discretionary, Technology, and Industrials sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which fell 0.83%, while the tech-heavy Nasdaq 100 (NDX) declined 1.2%.
Key Catalysts That Can Move SPY
The key catalysts for the SPY this week are major U.S. economic data releases (delayed by the recent government shutdown). 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 Q3 earnings report, due tomorrow, 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.
Also, several major retailers such as Walmart (WMT), Home Depot (HD), Target (TGT), and Lowe’s (LOW) are scheduled to report this week. Results from these companies will help shed light on the consumer spending trends during uncertainty.
Fund Flows and Sentiment
SPY’s 5-day net inflows totaled $2 billion, showing that investors put capital into SPY over the past five trading days. Meanwhile, its three-month average trading volume is 75.14 million shares.
It must be noted that currently, retail sentiment for the SPY ETF is Positive, while hedge fund managers have increased their holdings of the ETF in the last quarter.
SPY’s Price Forecast
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
Revealingly, SPY’s ETF Smart Score is a seven, implying that this ETF is likely to perform in line with the broader market.
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