The SPDR S&P 500 ETF Trust (SPY) gained 0.09% today, April 2, marking a continued rally driven primarily by hopes of de-escalation in the Iran conflict, despite high energy prices and volatility.
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Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.11% in the regular trading session, while the tech-heavy Nasdaq-100 (NDX) also rose 0.11%.
Key Catalysts That Can Move the SPY ETF
As Friday approaches, investors are looking ahead to the Nonfarm Payrolls report, which could impact future Federal Reserve policy. Also, the S&P 500 Services Purchasing Managers’ Index (PMI) data is expected, which reflects the strength of the service sector.
Fund Flows and Sentiment
SPY’s five-day net outflows totaled $3 billion, showing that investors pulled capital from the ETF over the past five trading days. Meanwhile, its three-month average trading volume is 89.35 million shares.
It must be noted that the crowd wisdom for the SPY ETF is very negative, whereas the hedge fund managers have increased 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 $821.10 for the SPY ETF implies an upside potential of 25.2%.
Currently, SPY’s five holdings with the highest upside potential are:
Meanwhile, its five holdings with the greatest downside potential are:
Revealingly, SPY ETF’s Smart Score is seven, implying that this ETF is likely to perform in line with the broader market over the long term.