The SPDR S&P 500 ETF Trust (SPY) declined 1.52% on Thursday. The performance was primarily impacted by volatility, driven by Nvidia’s (NVDA) post‑earnings rally fading and concerns over high AI stock valuations. In addition, the U.S. unemployment rate, which hit a multi‑year high, added to market anxiety.
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Within SPY’s holdings, only the Consumer Staples sector posted gains today, while the Technology, Consumer Discretionary, Industrials, and Materials sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was down 1.56%, while the tech-heavy Nasdaq 100 (NDX) fell 2.38%.
Key Catalysts That Can Move SPY
The key catalysts that can move the SPY ETF tomorrow are major U.S. economic data releases, such as the S&P Global U.S. Manufacturing and Services PMI reports and the University of Michigan Consumer Sentiment Index.
Also, several Fed officials are scheduled to speak, and their comments on interest rates will likely influence investors’ sentiment.
Fund Flows and Sentiment
SPY’s 5-day net outflows totaled $1 billion, showing that investors pulled out capital from SPY over the past five trading days. Meanwhile, its three-month average trading volume is 76.57 million shares.
It must be noted that the 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 $782.23 for the SPY ETF implies an upside potential of 19.88%.
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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