QQQ hits a 52-week high, gaining 38% from its low as AI momentum and strong earnings fuel growth ETF optimism.
The Invesco QQQ Trust (NASDAQ:QQQ) and the Nasdaq 100 have bounced back in record time from that vicious tariff sell-off encountered at the end of the first quarter.
Technology, the largest sector weight in a slew of cap-weighted, broad market equity benchmarks, roared back to life in the second quarter following a rough start to 2025. Some analysts view the group as fairly valued following that rebound, but it also remains home to an array of opportunity.
Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco QQQ (QQQ), a passively managed exchange traded fund launched on 03/10/1999.
Nvidia (NVDA) recently ascending to a market capitalization of $4 trillion is the latest confirmation that the AI trade, following some curveballs earlier this year, has come roaring back. It could have even more momentum in the second half of 2025.
While the prevailing bullish sentiment and the market's resilience to tariff news offer encouraging signs, the emergence of short-term caution flags like an overbought Nasdaq and extreme greed sentiment suggest a need for selective and strategic positioning.
"Buying into this market is a little bit dangerous right now," says Bob Lang. He sees the SPX pulling back to either 6,000 or 6,100 as it and the NDX wave overbought flags.
QQQ is a top AI and tech play, with strong momentum in AI spending driving future earnings and FCF growth for America's largest tech firms and magnificent 7 stocks. AI-related CapEx is accelerating, supporting a bullish outlook for QQQ's major holdings. QQQ offers a proven, diversified way to invest in the AI boom, with a track record of double-digit NAV gains.
There wasw plenty of faltering through the first four months of 2025. But the Nasdaq-100 and S&P 500 indexes are in the green on a YTD basis.
Invesco QQQ Trust ETF and Invesco NASDAQ 100 ETF's price divergences from the S&P 500 since my last writing have heightened their valuation risks. I do not see any clear alpha for either fund in the near future. for long-term holding, I prefer QQQM for at least 3 reasons: its lower fees, higher yield, and more rapid AUM growth judging by recent fund flow data.
Price action is the best 'tell' that exists on Wall Street. The resilient price action in the stock market suggests that geopolitical fears are likely overdone.
The stock market fell on Tuesday after tensions increased in the Middle East. This is one, if not the most, news driven market in recent history.