SPXL

The Week

iShares Core S&P 500 (IVV) fell 2.7% this week to $738.68, lagging the S&P 500 by 0.02 percentage points. The path was steady early in the week, with prices holding between $755.36 and $757.88 on Monday and Tuesday, then a push to $770.17 on Wednesday before Thursday’s sharp retreat to $736.21 and a small Friday recovery to $738.68. Weekly amplitude ran 4.81%, with the low of $735.91 on Thursday leaving the fund about 6% below its 10 October high of $785.03.

S&P 500 This Week

The underlying S&P 500 lost 2.68%, closing at 7,376.86. It opened the week at 7,610.83, touched an intraday high of 7,715.57 on Wednesday, then fell to 7,350.35 on Thursday before settling at 7,376.86 on Friday. Amplitude was 4.8%, and four of the five sessions closed below the Monday open. The index now sits below both its 20-day average of 7,657.80 and its 60-day average of 7,682.59.

Leverage & Decay

IVV tracks daily moves of the S&P 500 at 1x. The underlying lost 2.68% for the week, implying a theoretical net return of about -2.68%; the actual week came in at -2.7%, a gap of -0.02 percentage points. That gap traces to daily rebalancing: the product resets exposure against each close, so a weekly return is not a simple 1x multiple of the underlying’s weekly move. With this week’s path leaning mostly one-way despite Thursday’s drop and Friday’s bounce, the drag stayed small. In choppier conditions, daily rebalancing would create a wider deviation, and long-run returns would diverge further from a simple 1x compounded path.

S&P 500 News

The week’s S&P 500 headlines centred on Thursday and Friday. Post-midterm election positioning hit AI chip names, with S&P 500 constituents losing roughly $3tn in market cap in a single session, the Nasdaq 100 down over 6%, the Philadelphia Semiconductor Index off more than 12% at one point, and the VIX surging nearly 70%. Goldman Sachs’ trading desk reported heavy sell calls with few buyers as hedge funds and retail pulled back together with the market. Friday’s October payrolls showed 165,000 jobs added and unemployment down to 4.1%, after which chip stocks stabilised and the SOX rebounded over 4.2%. The S&P 500 closed lower for a fourth straight week and has made almost no net gain over five months.

The Week Ahead

The coming week is anchored by US inflation data. CPI and core CPI land on 10 November, with headline CPI expected at 3.9% year-on-year versus 3.7% prior, and core CPI forecast at 2.8% versus 2.6%. San Francisco Fed President Daly and other policymakers signalled this week that further hikes may still be in play, so the CPI print will test that view. Wholesale sales arrive on 9 November and the NFIB small-business optimism index on 10 November. For IVV, the forward path depends on whether the S&P 500 can stabilise after the AI-led sell-off and whether CPI keeps rate-hike pressure alive.

In Short

IVV’s weekly decline came as the AI trade cooled and midterm-election positioning spilled into broad equity selling; the fund moved almost in lockstep with the underlying. On valuation, IVV now trades around 10.32x P/E and 1.72x P/B, down from recent peaks. The latest daily capital snapshot shows net selling across large, medium and small orders, with large-lot money the largest net seller and medium-lot money marginally net buying. The tension heading into next week is between a still-elevated rate-hike bias and a tech complex that bounced on Friday but has yet to prove it can hold volume. CPI will be the first test of whether that bounce can extend or whether a fifth straight down week is likely.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.