The SPDR S&P 500 ETF Trust (SPY) gained 0.19% on Tuesday as bond yields and Bitcoin stabilized after having witnessed jumps and selloffs, respectively, in the previous session. Also, a 10% boost in Boeing (BA) stock after a positive financial outlook lifted the ETF.
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Within SPY’s holdings, Industrials, Technology, and Communication Services sectors posted gains today, while the Energy, Materials, and Utilities sectors declined the most.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.25%, while the tech-heavy Nasdaq 100 (NDX) gained 0.84%.
Fund Flows and Sentiment
SPY’s 5-day net inflows totaled $646 million, showing that investors put capital into 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 ADP National Employment Report and ISM Services PMI. The PCE index, which is the Fed’s preferred inflation gauge, will be released on Friday and will be closely watched for inflation trends.
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 Salesforce (CRM), Hewlett Packard Enterprise (HPE), 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 has a Moderate Buy rating. 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)
- Tesla (TSLA)
- Intel (INTC)
- Paramount Skydance (PSKY)
Revealingly, SPY’s ETF Smart Score is an eight, implying that this ETF is likely to outperform the broader market over the long term.
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