The SPDR S&P 500 ETF Trust (SPY) gained 0.55% on Friday, primarily driven by a rally in chip stocks, optimism about potential future Federal Reserve interest rate cuts, and a rise in energy prices.
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Within SPY’s holdings, Energy, Consumer Discretionary, and the Communication Services sectors posted higher gains today, while only the Healthcare sector declined.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.54%, while the tech-heavy Nasdaq 100 (NDX) gained 0.78%.
Fund Flows and Sentiment
SPY’s 5-day net outflows totaled $5 billion, showing that investors pulled out capital from SPY over the past five trading days. Meanwhile, its three-month average trading volume is 79.46 million shares.
It must be noted that the retail sentiment for the SPY ETF is positive, while hedge fund managers have decreased 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 $788.83 for the SPY ETF implies an upside potential of 15.43%.
Currently, SPY’s five holdings with the highest upside potential are:
Meanwhile, its five holdings with the greatest downside potential are:
- Albemarle Corporation (ALB)
- Expeditors International of Washington (EXPD)
- Tesla (TSLA)
- Incyte (INCY)
- Warner Bros. Discovery, Inc. (WBD)
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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