The SPDR S&P 500 ETF Trust (SPY) gained 0.39% on Wednesday, ending a four-day losing streak. A rebound in technology stocks, particularly ahead of Nvidia’s (NVDA) earnings report, was partly offset by newly released Federal Reserve meeting minutes, which revealed a divide over a potential December rate cut.
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Within SPY’s holdings, Technology, Communication Services, and Materials sectors posted gains today, while the Energy, Utilities, and Real Estate sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.38%, while the tech-heavy Nasdaq 100 (NDX) gained 0.56%.
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, several Fed officials are scheduled to speak, and their comments on interest rates will likely influence investors’ sentiment.
Further, Nvidia’s Q3 earnings, released on Wednesday evening, remain a primary focus for investors due to the company’s influence as a leader in the AI boom and its large weighting in the S&P 500. With record results and a strong outlook, SPY could see a lift tomorrow.
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 75.87 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. The Street’s average price target of $791.03 for the SPY ETF implies an upside potential of 19.38%.
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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