##  [# ETF Spotlight: SPY Falls on Inflation News](/sections/features/etf-spotlight-spy-falls-inflation-news) 

 

# ETF Spotlight: SPY Falls on Inflation News

 

 

SPY's selloff has followed an extended run into positive territory.



 

 

 

 

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[By Lucy Brewster](/authors/lucy-brewster)

 Apr 19, 2024

 Edited by: James Rubin

 

 

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The [**SPDR S&amp;P 500 ETF Trust (SPY)**](/SPY) has fallen more than 2% this week on a broader market selloff, veering from the stellar bull run for the fund, which tracks the S&amp;P 500.

The ETF, which follows a market cap weighted index of large and mid-cap stocks, surged at the end of last year and through the first quarter of this year on the gains of high-flying tech stocks, including AI-focused chip maker Nvidia.

Overall, the S&amp;P 500 gained 10% over the first quarter of 2024 when the index soared past 5,000 to set the first of several [all-time highs.](https://www.etf.com/sections/news/sp-500-closes-above-5000-first-time#:~:text=High%2Dflying%20tech%20names%20drove%20the%20index%20to%20a%20record%20high.&text=The%20S%26P%20500%20closed%20above,the%20tank%20for%20future%20runs.) The SPY ETF is still up 6.5% year to date, but in the past week, is down 2% on news that inflation has been stickier than expected.

## CPI Report Triggers Selloff

The March consumer price index (CPI), released last week, rose 3.5% year over year, indicating that inflation is still cooling at a slower rate than Federal Reserve bankers had hoped.

“After a relentless, double-digit rally in the S&amp;P 500, investors turned slightly more bearish this week due to a surge in bond yields,” etf.com Sumit Roy said. “Three straight, higher-than-expected inflation prints were the catalyst for the downturn, and now we’ll see whether this sell off is a garden-variety pullback or turns into something bigger in the coming weeks,” he added.

Investors [have drained](https://www.etf.com/etfanalytics/etf-fund-flows-tool-result?tickers=SPY&startDate=2024-04-01&endDate=2024-04-18&frequency=DAILY) $13.6 billion in outflows from SPY since the beginning of April, according to etf.com data. Overall, outflows year to date from SPY total $22.8 billion.

*Contact Lucy Brewster at* <lucy.brewster@etf.com>.

 
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 [ Lucy Brewster Finance Reporter ](/authors/lucy-brewster) 

 

 

  Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears…   [View Bio](/authors/lucy-brewster)

 



 

 


 Related Topics  [S&amp;P 500](http://www.etf.com/topics/sp-500)