The SPDR S&P 500 ETF Trust (SPY) gained 0.04% today, April 7, as investors reacted to optimistic news regarding diplomatic efforts to calm Middle East tensions.
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Importantly, SPY closely tracks the S&P 500 Index (SPX), which was up 0.08% in the regular trading session, while the tech-heavy Nasdaq-100 (NDX) also rose 0.04%.
Key Catalysts That Can Move the SPY ETF
Key catalysts for the SPY ETF during this week include the developments in the Middle East, high energy prices, and upcoming U.S. economic data releases.
The FOMC meeting minutes, due Wednesday, April 8, will provide insight into the Federal Reserve’s stance on interest rates amid the conflict. On Thursday, April 9, investors will watch the Core PCE Price Index, the Fed’s preferred inflation gauge, for signs of cooling price pressures.
The week wraps with the March Consumer Price Index, set for release Friday, April 10, a key inflation read that could influence expectations for future Fed policy.
While major banks officially kick off Q1 earnings season next week, several notable companies report in the days ahead, including Delta Air Lines (DAL) and BlackRock (BLK).
Fund Flows and Sentiment
SPY’s five-day net outflows totaled $721 million, showing that investors pulled capital from the ETF over the past five trading days. Meanwhile, its three-month average trading volume is 89.77 million shares.
It must be noted that the crowd wisdom for the SPY ETF is very positive, while 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 $825.36 for the SPY ETF implies an upside potential of 25.20%.
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.