Following a series of new record-highs set during the past week, the S&P 500 (SPX) is now taking a breather as sellers step in.
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This morning, President Trump warned that he may unleash the DOGE “monster” on Elon Musk. The two billionaires have resumed their spat over Trump’s megabill after their first feud ended with a Musk apology. The bill is currently pending approval in the Senate.
“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE,” said Trump on Truth Social this morning.
Meanwhile, an encouraging Job Openings and Labor Turnover Survey (JOLTS) report failed to lift the market. Job openings tallied in at 7.769 million in May, above the expectation for 7.300 million and rising from the upwardly revised figure of 7.395 million in April.
Rising odds of an interest rate cut in July have also done little to support stocks. On Tuesday, Fed Chair Jerome Powell said he “can’t say” if July is too early to cut rates. The odds of a 25 basis points reduction at the July Federal Open Market Committee (FOMC) are now at 21.2%, up from 18.6% yesterday and 18.6% a week ago.
The S&P 500 is down by 0.24% at the time of writing.
Which Stocks are Moving the S&P 500?
Let’s pivot to TipRanks’ S&P 500 Heatmap, which illustrates the stocks that have contributed to the index’s price action.
AI stocks, like Nvidia (NVDA), Broadcom (AVGO), and Advanced Micro Devices (AMD), are noticeably weak following several weeks of strong performance. This shouldn’t be a cause for concern just yet, as they may be consolidating lower before setting up for the next leg higher.
Tesla (TSLA) is plunging following the revival of the Trump-Musk feud. Lowering or scrapping government subsidies for Tesla EVs could prove disastrous for the company, and investors are taking notice. Other companies within the consumer cyclical industry, like Home Depot (HD), Starbucks (SBUX), and Nike (NKE), are enjoying strong gains.
SPY Stock Moves Lower with the S&P 500
The SPDR S&P 500 ETF (SPY) is an exchange-traded fund designed to track the movement of the S&P 500. As a result, SPY moves in tandem with the SPX.
Wall Street expects further upside for SPY. During the past three months, analysts have issued an average SPY price target of $667.29 for the stocks within the index, implying upside of 8.26% from current prices. The 504 stocks in SPY carry 420 buy ratings, 79 hold ratings, and five sell ratings.