SPDR S&P 500 ETF Trust Faces Fund Outflows Amid Tech Gains

SPDR S&P 500 ETF Trust ( $SPY ) has risen by 1.92% in the past week. It has experienced a 5-day net outflow of $523.73 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Microsoft has been actively making strategic moves in the tech industry, particularly in artificial intelligence. The company, which holds a significant stake in OpenAI, has introduced Codex, an AI tool to assist developers, and is considering acquiring Windsurf to enhance its offerings. Microsoft is also addressing European competition concerns by unbundling its Office 365 and Microsoft 365 suites from its Teams app, potentially avoiding EU fines. Despite regulatory scrutiny, Microsoft’s stock is performing well, with analysts giving it a Strong Buy consensus and Citigroup raising its price target, indicating a promising growth outlook.
• Nvidia Corporation has seen its stock surge due to increased stakes in CoreWeave and new AI chip export deals with the Middle East. The company’s valuation has crossed $3 trillion, driven by booming demand for AI chips and strategic trade diplomacy. Nvidia plans to open a research center in Shanghai to maintain competitiveness in China despite U.S. export curbs. Analysts maintain a Strong Buy consensus on Nvidia stock, with expectations of continued dominance in the semiconductor sector.
• Apple Inc is navigating geopolitical challenges as President Trump pressures the company to shift iPhone production back to the U.S., a move deemed impractical by analysts due to high costs. Despite these challenges, Apple’s stock has risen 7% this week, although it remains down year-to-date. The company is also involved in a legal battle with Epic Games over Fortnite’s inclusion in the iOS App Store. Analysts maintain a Moderate Buy consensus on Apple stock, with optimism for its future performance.