Battered and bruised through Q1, the Magnificent Seven and other large- and mega-cap growth stocks have facilitated the broader market's recent bullishness.
If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco QQQ (QQQ), a passively managed exchange traded fund launched on 03/10/1999.
A Wednesday slide by Google parent Alphabet (GOOGL) notwithstanding, the Magnificent Seven stocks have been impressive in recent weeks, as highlighted by a 14.07% gain over the past month by the Nasdaq-100 Index (NDX). That's been to the delight of investors holding the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM).
We highlight five sectors that are likely to make the most of the U.S.-China trade deal.
The rally has been broad-based across all segments, with the technology sector being at the forefront.
Big Tech stocks are bouncing back -- strong earnings, solid AI investments, and ETF gains show why the sector remains a strong long-term bet despite early 2025 setbacks.
Profit margin is an important though easy-to-understand concept. Put simply, it's how much a company's sales are retained as profits after all costs are accounted for.
Tech giants roared, adding to strong market gains last week. Tariff fears cooled a bit, though uncertainty remains.
In sector terms, communication services is young. It will turn seven years old later this year.
Despite the latest turmoil that's rattling the market due to concerns about how President Donald Trump's trade policies will play out, the S&P 500 i ndex has done a good job compounding investor capital over the long run. In the past 10 years, the widely followed benchmark has produced a total return, including dividends, of 194%.
Trump's announcement of lower tariffs on China may push markets up in the short term, but it weakens his negotiation position, likely leading to failed trade talks. Rising credit default swap premiums and a recently inverted yield curve signal significant economic concerns, indicating a potential recession. High valuations of SPY and QQQ, coupled with structural economic issues, skew expected returns to the downside.
Using financial instruments incorrectly can lead to inefficiency or guaranteed losses; understanding their construction and purpose is crucial. Leveraged ETFs, like TQQQ, are designed for daily trading, not long-term holding, due to time decay and daily reset mechanisms. Leveraged ETFs are suitable for hedging or speculating on daily market movements, not for buy-and-hold strategies.