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SPDR S&P 500 ETF Trust (NYSEARCA:SPY): Focus On The Bullish Momentum On Wall Street

Posted in Markets2 years ago • Written by CyrusNo Comments

Dallas, Texas, 09/30/2013 (ustrademedia) – Dallas, Texas, 09/27/2013 (ustrademedia) – SPDR S&P 500 ETF Trust (NYSEARCA:SPY), an exchange traded fund (ETF), is a trust that corresponds to the yield and price performance of the S&P 500 Index. The investment sector of the trust’s fund includes industrials, information technology, health care, financials, consumer discretionary, energy, telecommunication services and utilities. The objective of SPY is to provide results of investments which will communicate to the price and yield performance of the Index, and to maintain this correspondence between the weighting and composition of the securities in the portfolio of the trust and the component stocks of the index, the trustee attempts to adjust the changes from time to time so as to introduce the periodic changes in the identity and the related weightings of the securities in the index. The portfolio of securities and cash hold by the trust is not managed by the traditional methods.

Last week a bullish momentum took place on the Wall Street which weighted heavily on the market and aroused a reason to be a concern for the investors. The government shutdown which was to occur in this week was not inevitable, but the event in the Wall Street made the occurrence of the shutdown almost impossible and the government will not be able to avoid it. Thus it will lead to shortfall in funding and will create tensed budget negotiations. This will further affect consumer sentiments, employment, home sales, durable goods order, and a fair amount of activity in the weeks ahead. As the SPY trust measures the performance of the US equity market’s large capitalization sector, so with the adverse effect of employment the focus of the fund will be affected and the data of the non-farm employment rate will also change.

Though the occurrence of the event will bring about huge difference in all the activities that takes place in the economy, yet it is expected that the affect could be overcomed within a short period of time in the future and the fall of the market determinants would be stabilized.

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