The SPDR S&P 500 ETF Trust (SPY) ended almost flat on Tuesday, dipping 0.01% to $671.29. Despite upbeat results from major companies, concerns about the impact of the ongoing U.S. government shutdown kept gains in check.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Within SPY’s holdings, consumer discretionary and industrial stocks showed strength, while utilities and communication services lagged.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which also ended flat. Also, the Nasdaq 100 (NDX) dropped 0.06%.
What Impacted the Market?
Strong earnings from companies such as General Motors (GM) and 3M (MMM) lifted investor sentiment. Also, they bolstered confidence in corporate profitability and the resilience of U.S. businesses despite macro uncertainty.
However, Tuesday marked the 21st day of the U.S. government shutdown, and the lack of progress has fueled fears of long-term damage. Also, concerns are mounting as key services like air travel are starting to feel the strain.
It must be noted that with CPI and Q3 GDP reports due later this week, SPY could see increased volatility.
Fund Flows and Sentiment
SPY’s 5-day net flows totaled $7 billion, showing that investors added capital to SPY over the past five trading days. Meanwhile, its three-month average trading volume is 73.74 million shares.
Also, retail sentiment remains neutral, while hedge fund managers increased their holdings in the last quarter.
SPY’s Price Forecasts and Holdings
According to TipRanks’ unique ETF analyst consensus, which is based on a weighted average of analyst ratings on its holdings, SPY is a Moderate Buy. The Street’s average price target of $753.46 for the SPY ETF implies an upside potential of 12.24%.
Currently, SPY’s five holdings with the highest upside potential are Moderna (MRNA), MGM Resorts (MGM), Fiserv (FI), Charter Communications (CHTR), and News Corporation (NWSA).
Meanwhile, its five holdings with the greatest downside potential are Paramount Skydance (PSKY), Intel (INTC), Super Micro Computer (SMCI), Tesla (TSLA), and Palantir (PLTR).
Revealingly, SPY’s ETF Smart Score is eight, implying that this ETF is likely to outperform the broader market.
Power up your ETF investing with TipRanks. Discover the Top Equity ETFs with High Upside Potential, carefully curated based on TipRanks’ analysis.