The Week

IVV.US fell 0.39% this week to close at $764.92, underperforming the S&P 500 by about 0.31 percentage points as the benchmark slipped just 0.08%. The ETF climbed early in the week, touching $767.15 on Monday (14 Sep), before fading through Tuesday and Wednesday. Wednesday’s low of $751.02 marked the week’s trough, with a modest rebound on Thursday and Friday that still left the fund in the red. Volume picked up sharply: average daily turnover of about 9.85m shares ran roughly 102% above the 60-day median.

S&P 500 This Week

The benchmark S&P 500 dipped 0.08% to 7,650.5. Trading followed a similar path: a soft start, selling into midweek, then a rebound into Friday that mostly erased the earlier decline. The index hit a weekly low of 7,507.77 on Wednesday before recovering to 7,650.5 by Friday. Friday’s volume was notably heavier, suggesting money came back into equities once the Fed decision was out of the way.

Leverage & Decay

IVV.US aims to deliver 1x the daily move of the S&P 500. With the benchmark down 0.08% this week, a simple 1x replication would imply roughly -0.08% for the fund, but IVV.US actually lost 0.39%, leaving a gap of about 0.31 percentage points. The difference stems from daily rebalancing: the product tracks daily returns, not weekly returns. When the underlying index swings back and forth — as the S&P 500 did this week, with consecutive declines followed by a two-day bounce — path dependency causes the actual result to deviate from a straightforward multiple of the weekly move. Over longer holding periods, that tracking gap can widen further.

S&P 500 News

The Fed decision dominated the week. Oil price gains and rising Treasury yields pressured risk appetite early on, with Wells Fargo trimming its year-end S&P 500 target to 7,700. After the Fed delivered its rate hike on Thursday (17 Sep), the market split: some investors read it as resolution of a long-running overhang, lifting Nasdaq futures, while the dot plot’s median signal of one more hike this year kept tightening anxiety alive. Friday brought a late surge in AI hardware names, with the Philadelphia Semiconductor Index up more than 2% and memory stocks leading gains. For all the drama, the S&P 500 finished almost flat, with no broad-based selling pressure.

The Week Ahead

The macro calendar shifts to a data-check phase. On 22 Sep (Tue), the Richmond Fed composite index lands with a prior reading of 4. EIA crude oil inventories on 23 Sep (Wed) will show whether oil’s late-week pullback has legs. Thursday 24 Sep brings initial jobless claims, the current account balance, and new home sales, where the forecast of 608k sits just above the prior 607k. These releases will shape how markets price the possibility of another Fed hike. For IVV.US, next week’s marginal moves will continue to track the S&P 500’s response to macro data.

In Short

IVV.US and the S&P 500 both edged lower this week, but the ETF lagged its benchmark by about 0.31 percentage points as daily rebalancing amplified the cost of a choppy path. Sentiment remains split: strategists such as Jefferies see earnings driving the index toward 8,000 by year-end, yet the Fed’s dot plot leaves room for one more hike this year, and money flows have not turned decisively one way. The next test is whether inflation and labour data ease rate pressure, and whether AI-led earnings expectations continue to hold up.

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