SPDR S&P 500 ETF Trust SPY Stock News and Forecast: Stocks collapse on earnings, higher yields and Ukraine

SPY closes nearly 3% lower on Tuesday.
Nasdaq (QQQ) is the worst performer with a near 4% loss.
All sectors bar energy finish lower on Tuesday.

Ivan Brian FXStreet

The recent nervousness in equity markets spilled over on Tuesday with equity markets in the US moving sharply lower after European markets had finished for the day. The S&P 500 (SPY) finished 2.8% lower, the Dow Jones Index was down 2.4% but it was the tech sector that again fared the worst with the Nasdaq (QQQ) down 3.87% on the day. The small-cap Russell 2000 (IWM) also lost over 3%. Tech (XLK), Financials (XLF), and Communications (XLC) were the worst sectors with Energy (XLE) just about closing in the green +0.14%.

Volatility spiked again with the well followed VIX up above 30 and the less well know Nasdaq volatility index (VXN) spiking to a year high.

VXN Nasdaq Volatility Index, daily

S&P 500 (SPY) stock news

Things were holding up before Tuesday really got going with Pepsi (PEP) adding to strong earnings from rival Coke (KO). But geopolitical events took over as news of a conflict in Moldova stoked fears the Russia Ukraine crisis could spread. News later in the day that Russia was suspending gas supplies to Poland and Bulgaria also dented investor confidence. The final nail in the coffin came from Tesla (TSLA) which slumped 14% as concerns grew over the impact Elon Musks Twitter (TWTR) takeover would have on Tesla (TSLA). Elon Musk has reportedly pledged Tesla stock as collateral for loans to finance his acquisition of Twitter. After hours earnings from Microsoft (MSFT) and Google (GOOGL) painted conflicting pictures. Microsoft saw strong growth in its Azure cloud revenue while Google posted more somber earnings as advertising revenue fell. This has read across for Amazon (AMZN) the number 2 cloud provider behind Azure and Facebook (FB), also reliant on advertising. Facebook Meta Platforms reports earnings after the close tonight, Wednesday.

S&P 500 (SPY) stock forecast

This is where things get really interesting. $415 is key support, the last time we set a powerful double bottom down here which st up the rally. Now can it hold again? If not the Ukraine low at $410 is the obvious target. If that goes it gives further confirmation that we are in a bear market with a lower low matching the lower highs. Earnings season this week is key.

SPY chart, daily

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold hovers around $4,100 as Fed decision hits the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts about a rate hike in September. XAU/USD peaked above $4,100, now battling to retain the level.

No soft target: Warsh vows to return inflation to 2%

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase. Chair Kevin Warsh reinforced that message, insisting there was no tolerance for a softer inflation target and warning that the Fed would not hesitate to act.

How the CLARITY Act unlocks Wall Street’s tokenization pipeline

The United States (US) Digital Asset Market Clarity Act (CLARITY Act), awaiting a full Senate floor vote, promises to unlock Wall Street’s potential to tokenize financial assets, including equities, US Treasuries, private credit, real estate and commodities at a scale that could supercharge the real-world asset (RWA) market from the current $17 billion level to $5.5 trillion by 2030, according to

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.