Vanguard S&P 500 ETF (VOO) Dips Amid Fed Rate Cut Uncertainty and AI Bubble Concerns
The Vanguard S&P 500 ETF (VOO) fell 1.63% on Thursday, reflecting growing market unease over the Federal Reserve's potential hesitation on interest rate cuts. Pre-market trading saw an additional 0.74% decline, compounding Wall Street's sharpest single-day drop in a month. Investor sentiment is further dampened by fears of an AI sector bubble and broader economic slowdown signals.
Despite recent turbulence, VOO remains up 0.69% over five days and 17.64% year-to-date. The ETF mirrors the S&P 500 Index (SPX), which dropped 1.66%, while the tech-heavy Nasdaq 100 (NDX) fell 2.05%. Steady demand persists, with $3 billion in net inflows over five days.
Analyst consensus rates VOO as a Moderate Buy, projecting an 18.95% upside to a $735.08 average price target. Top holdings with growth potential include Loews, Fiserv, DuPont, Oracle, and Moderna.
