The SPDR S&P 500 ETF Trust (SPY) declined 0.46% on Monday, primarily due to weak manufacturing data, higher bond yields, and a selloff in cryptocurrencies.
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Within SPY’s holdings, Energy, Technology, and Consumer Discretionary sectors posted gains today, while the Utilities, Industrials, and Healthcare sectors declined.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was down 0.53%, while the tech-heavy Nasdaq 100 (NDX) declined 0.36%.
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 80.19 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.
Key Catalysts That Can Move SPY ETF
The key catalysts that can move the SPY ETF this week include several key economic reports, such as JOLTS Job Openings, ADP National Employment Report, and ISM Services PMI. Also, investors will be listening closely to scheduled speeches from various Fed officials this week for final policy cues.
Finally, the earnings season is winding down, but several major companies are reporting this week, which could impact market sentiment. These include CrowdStrike (CRWD), Salesforce (CRM), Hewlett Packard Enterprise (HPE), Marvell (MRVL), Snowflake (SNOW), and DocuSign (DOCU).
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 $788.96 for the SPY ETF implies an upside potential of 15.98%.
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)
- Intel (INTC)
- Tesla (TSLA)
- Paramount Skydance (PSKY)
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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