The SPDR S&P 500 ETF Trust (SPY) was up 0.23% on Thursday, primarily driven by the Federal Reserve’s decision to cut interest rates yesterday. However, Oracle’s (ORCL) disappointing earnings forecast weighed on tech stocks and sparked fears of an AI bubble.
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Within SPY’s holdings, the Industrials, Materials, and Financials sectors gained the most today, while the Communication Services, Technology, and Energy sectors declined.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.21%, while the tech-heavy Nasdaq 100 (NDX) declined 0.35%.
Fund Flows and Sentiment
SPY’s 5-day net inflows totaled $13 billion, showing that investors put capital into SPY over the past five trading days. Meanwhile, its three-month average trading volume is 79.01 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 market will continue to digest the Fed’s announcements and forward guidance from Powell’s press conference, which can lead to some volatility in the SPY ETF. Also, several major companies are reporting earnings today after the bell, including Costco (COST), Lululemon (LULU), and Broadcom (AVGO). These companies have the potential to influence the SPY ETF.
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 has a Moderate Buy rating. The Street’s average price target of $791.95 for the SPY ETF implies an upside potential of 14.92%.
Currently, SPY’s five holdings with the highest upside potential are:
Meanwhile, its five holdings with the greatest downside potential are:
- Warner Bros. Discovery (WBD)
- Tesla (TSLA)
- Expeditors International of Washington (EXPD)
- JB Hunt Transport Services (JBHT)
- Albemarle (ALB)
Revealingly, SPY’s ETF Smart Score is a seven, implying that this ETF is likely to perform in line with the broader market over the long term.
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