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S&P 500 Hits 5400 Level: 5 Top-Performing Stocks in ETF

The S&P 500 Index has been on an incredible rally this year, achieving new milestones and gaining 13.6% so far. The index has now crossed the 5,400 level for the first time after hitting the 5,300 threshold last month, underscoring strong confidence. The latest leg of the rally came on cooler-than-expected inflation data despite hawkish commentary from the Fed (read: ETFs in Focus on the Upcoming S&P 500 Shake-Up).

SPDR S&P 500 ETF Trust SPY, the proxy version of the S&P 500 Index, has gained 13.3% in the year-to-date timeframe. While many stocks powered the ETF, we have highlighted five that have been leading the way higher. These are Super Micro Computer Inc. SMCI, Nvidia Corporation NVDA, Vistra Energy Corp. VST, Constellation Energy Corporation CEG and First Solar Inc. FSLR.

Inflation in the United States cooled down in May for the second consecutive month. The Consumer Price Index rose 3.3% year over year in May, down from an annual growth of 3.4% in April. On a monthly basis, prices held flat for the first time since July 2022. Easing inflation indicates that the economy is stabilizing, and interest rates may be declining.

In the latest FOMC meeting concluded yesterday, U.S. policymakers penciled in just one rate cut this year and foresee four cuts in 2025. The Fed altered language in its statement, noting there has been “modest further progress toward the committee’s 2% inflation objective.” Previously, the statement pointed to a “lack” of further progress. The Fed meeting signals a period of higher interest rates for some more time, which will continue to act as a positive thrust for S&P 500 due to its less volatile nature (read: 5 Large-Cap ETFs at the Forefront of the Market Rally This Year).

Additionally, strong earnings growth and the artificial intelligence (AI) craze have been driving stocks higher. In particular, the "Magnificent Seven" is the biggest engine of growth for the technology sector and the S&P 500 as a whole. It now accounts for 31% of the weightage in the S&P 500.

Let’s take a closer look at the fundamentals of SPY.

SPY in Focus

SPDR S&P 500 ETF Trust holds 503 stocks in its basket, with each accounting for no more than 7.1% of the assets. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, financials, healthcare and consumer discretionary accounting for a double-digit allocation each.

SPDR S&P 500 ETF Trust has an AUM of $541 billion and charges 9 bps in fees per year. It trades in an average daily volume of 51 million shares and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (see: all the Large Cap Blend ETFs here).

Below, we have highlighted the abovementioned five best-performing stocks in the ETF.

Best-Performing Stocks of SPY

Super Micro designs, develops, manufactures and sells energy-efficient, application-optimized server solutions based on the x86 architecture. The stock has skyrocketed 172.5% this year and accounts for a 0.08% share in the SPY portfolio.

Super Micro has an estimated earnings growth rate of 44.6% for the fiscal year (ending June 2025) and a Zacks Rank #3 (Hold).

Nvidia is the worldwide leader in visual computing technologies and the inventor of graphic processing unit or GPU. The stock has jumped 152.8% this year. It has an estimated growth of 106.1% for the fiscal year (ending January 2025).

Nvidia makes up 6.6% of the assets in SPY and currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vistra Energy is an energy company that offers electricity and power generation, distribution and transmission solutions. The stock has jumped 135.1% so far this year. It makes up 0.07% of the assets in the SPY portfolio.

Vistra Energy has an expected earnings growth rate of 5.8% for this year and a Zacks Rank #1.

Constellation Energy generates and markets electricity. It sells natural gas, renewable energy and other energy-related products and services. The stock has jumped 86.6% so far this year. It makes up 0.15% of the assets in the SPY portfolio.

Constellation Energy has an expected earnings growth rate of 52.1% for this year and a Zacks Rank #2 (Buy) (read: ETFs to Make the Most of the AI-Powered Utility Sector).

First Solar is the world’s largest thin-film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere. The stock has risen 74.5% so far this year and accounts for a 0.07% share in the SPY portfolio.

First Solar earnings are expected to grow a substantial 75.1% this year. The stock carries a Zacks Rank #3.

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Constellation Energy Corporation (CEG) : Free Stock Analysis Report

First Solar, Inc. (FSLR) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report

Vistra Corp. (VST) : Free Stock Analysis Report

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Zacks Investment Research