The SPDR S&P 500 ETF Trust (SPY) ended 0.82% higher on Friday. Importantly, the ETF hit a new all-time high of $678.46 during the day. The upside was primarily due to a cooler-than-expected inflation report and strong earnings reports from several key companies, including Intel (INTC), Ford (F), and General Dynamics (GD).
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Within SPY’s holdings, Technology, Communication Services, and Utilities sectors posted gains today, while the Energy and Consumer Staples sectors declined.
Importantly, SPY closely tracks the S&P 500 Index (SPX), which also ended 0.8% higher. Further, the Nasdaq 100 (NDX) gained 1.04%.
What Impacted the Market Today?
The market got a boost after the Consumer Price Index (CPI) report for September came in lower than anticipated, raising hopes for Fed interest rate cuts later this year. Also, strong results from major S&P 500 companies contributed to the positive market sentiment.
Historically, the end of October often sees an upward trend in stock prices. This is due to institutional investors buying stocks with excess cash as they close their fiscal year.
Looking ahead, the Fed’s upcoming October 28-29 meeting and the potential impact of the ongoing U.S. government shutdown could trigger volatility in the SPY ETF.
Fund Flows and Sentiment
SPY’s 5-day net outflows totaled $2 billion, showing that investors pulled capital from SPY over the past five trading days. Meanwhile, its three-month average trading volume is 73.83 million shares.
It must be noted that retail sentiment remains neutral, while hedge fund managers increased their holdings of the SPY ETF 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 $752.25 for the SPY ETF implies an upside potential of 11.07%.
Currently, SPY’s five holdings with the highest upside potential are Moderna (MRNA), Charter Communications (CHTR), News Corporation (NWSA), MGM Resorts (MGM), and GoDaddy (GDDY).
Meanwhile, its five holdings with the greatest downside potential are Intel, Paramount Skydance (PSKY), Tesla (TSLA), Palantir (PLTR), and Garmin (GRMN).
Revealingly, SPY’s ETF Smart Score is eight, implying that this ETF is likely to outperform the broader market.
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