The SPDR S&P 500 ETF Trust (SPY) gained 0.76% on Thursday, primarily due to a cooler-than-expected inflation report and strong earnings from a major tech company, Micron (MU).
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Within SPY’s holdings, the Consumer Discretionary, Communication Services, and Technology sectors gained today, while the Energy, Consumer Staples, and Real Estate sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.79%, while the tech-heavy Nasdaq-100 (NDX) rose 1.51%.
Key Catalysts That Can Move SPY Tomorrow
The primary catalysts that can impact the SPY ETF on Friday are key U.S. economic data releases, such as the final revision of the University of Michigan’s consumer sentiment index, which will offer insight into consumer confidence.
Further, the Bank of Japan (BoJ)is expected to announce its latest interest rate decision tomorrow. The BoJ is widely expected to announce an interest rate hike, taking its benchmark rate to a 30-year high of 0.75%. This could influence market sentiment.
Further, investors are awaiting this week’s S&P 500 and Nasdaq‑100 index rebalancing, which can shift stock weights and spark volatility.
Fund Flows and Sentiment
SPY’s five-day net inflows totaled $5 billion, showing that investors put capital into SPY over the past five trading days. Meanwhile, its three-month average trading volume is 81.04 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 has a Moderate Buy rating. The Street’s average price target of $807.92 for the SPY ETF implies an upside potential of 19.43%.
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)
- Albemarle (ALB)
- JB Hunt Transport (JBHT)
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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