QQQ ETF Faces Volatility Amid Tech Valuation Concerns and Political Developments
The Invesco QQQ ETF, tracking the Nasdaq 100 Index, declined 3.99% over the past week but remains up 19.7% year-to-date. Friday's 0.32% drop reflected investor unease about stretched valuations in tech and AI stocks. Markets rebounded Monday with a 1.51% pre-market gain as Senate progress toward ending the government shutdown buoyed sentiment.
Analysts maintain a Moderate Buy rating with a $711.97 price target, suggesting 17% upside potential. MicroStrategy leads holdings with highest projected gains, while Tesla tops the downside risk list. The ETF's Smart Score of 8 indicates outperformance potential relative to peers.