The SPDR S&P 500 ETF Trust (SPY) gained 0.35% on Wednesday, primarily due to a stronger-than-expected ADP private payrolls report. Meanwhile, concerns over the valuation of AI stocks and uncertainty about the ongoing U.S. government shutdown continued to weigh on the market.
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Within SPY’s holdings, the Communication Services, Consumer Cyclical, Energy, Technology, and Industrials sectors posted gains today, while the Real Estate and Consumer Staples sectors declined.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which ended 0.37% higher. Also, the tech-heavy Nasdaq 100 (NDX) rose 0.72%.
Key Catalysts That Can Move SPY
Looking ahead, potential catalysts for SPY volatility include the ongoing U.S. government shutdown and upcoming speeches by several Fed officials, which could impact investor sentiment and rate expectations.
Fund Flows and Sentiment
SPY’s 5-day net inflows totaled $13 billion, showing that investors put capital in SPY over the past five trading days. Meanwhile, its three-month average trading volume is 72.74 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 $777.49 for the SPY ETF implies an upside potential of 14.75%.
Currently, SPY’s five holdings with the highest upside potential are DuPont de Nemours (DD),
Loews (L), Moderna (MRNA), Fiserv (FI), and Norwegian Cruise Line (NCLH).
Meanwhile, its five holdings with the greatest downside potential are Expeditors (EXPD), Tesla (TSLA), Paramount Skydance (PSKY), Incyte (INCY), and Warner Bros. Discovery (WBD).
Revealingly, SPY’s ETF Smart Score is eight, implying that this ETF is likely to outperform the broader market.
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