The SPDR S&P 500 ETF Trust (SPY) is up 0.12% in the pre-market trading session on Wednesday, as markets attempt to recover from a sharp sell-off in technology and software stocks during the previous session.
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Importantly, SPY closely tracks the S&P 500 Index (SPX), which declined 0.84% in the previous regular trading session, while the tech-heavy Nasdaq-100 (NDX) was down 1.55%.
Key Catalysts That Can Move the SPY ETF
The key catalysts for this week include earnings from several mega-cap companies. Particularly, reports from Amazon (AMZN) and Alphabet (GOOGL) are considered the headline “AI earnings stress test.” Their results and guidance on AI capital expenditure will directly impact the S&P 500’s heavy tech weighting.
Reports including ADP employment and JOLTS job openings will provide insights into the health of the U.S. economy, affecting expectations for Federal Reserve policy.
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 $826.26 for the SPY ETF implies an upside potential of 19.83%.
Currently, SPY’s five holdings with the highest upside potential are:
Meanwhile, its five holdings with the greatest downside potential are:
- Loews (L)
- Moderna (MRNA)
- Archer-Daniels-Midland (ADM)
- SanDisk (SNDK)
- Old Dominion Freight Line (ODFL)
Revealingly, SPY’s ETF Smart Score is seven, implying that this ETF is likely to perform in line with the broader market over the long term.