SPY ETF Drops 1.66% Amid Fed Rate Uncertainty, Tech Sector Leads Declines
The SPDR S&P 500 ETF Trust (SPY) fell sharply on Thursday, mirroring broader market unease as investors weighed mixed signals on Federal Reserve policy. Energy stocks emerged as the sole bright spot, while technology and consumer discretionary sectors bore the brunt of the selloff.
Market sentiment remains fragile despite the resolution of the government shutdown. The Nasdaq 100's 2.05% decline outpaced the S&P 500's drop, reflecting particular pressure on growth stocks. Nearly $3 billion flowed out of SPY over five trading days, though hedge funds appear to be accumulating positions.
All eyes now turn to upcoming economic data releases and Fed commentary for clues on whether policymakers will maintain their restrictive stance. The ETF's three-month average trading volume holds steady at 73.98 million shares, suggesting continued liquidity despite recent volatility.
