Nasdaq 100 & QQQ Soar as U.S.-China Trade Truce Meets Cooling Inflation—2025 Rally Brewing?
Tech bulls charge as the Nasdaq 100 index spikes—fueled by a double shot of trade détente and tame inflation data. QQQ ETF mirrors the rally, leaving skeptics scrambling.
The Trade Deal Bump: Markets exhale as Washington and Beijing call a ceasefire in their economic cold war. No details? No problem—traders buy first, ask later.
Inflation Cools Its Jets: The latest CPI print gives the Fed room to ease off rate hikes. Cue the algo-driven buying spree.
Wall Street’s Open Secret: Everyone knows this rally runs on hopium and liquidity—but why fight the trend? Just don’t mention the debt ceiling reckoning coming in Q3.
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“WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT,” said TRUMP on Truth Social this morning. While details of the deal are scarce and still pending approval from both presidents, it would result in China increasing its exports of rare earths and magnets to the U.S. In exchange, the U.S. will remove export curbs on some products to China, which could include semiconductors and aircraft parts.
Meanwhile, inflation is cooling down. May’s CPI showed a 0.1% month-over-month (MoM) rise, below the economist estimate of 0.2%. Inflation rose by 2.4% year-over-year (YoY), in line with the estimate. Core CPI, which strips out volatile food and energy prices, rose by 0.1% MoM and 2.8% YoY, below the estimates for 0.3% and 2.9%, respectively.
The Nasdaq 100 is up by 0.22% at the time of writing.
Which Stocks are Moving the Nasdaq 100?
Let’s take a look at TipRanks’ Nasdaq 100 Heatmap, which illustrates the stocks that have contributed to the index’s price action.
Palantir (PLTR) is a top performer within the tech sector with a 3.52% return, bringing its year-to-date return to a staggering 82%. Furthermore, Broadcom (AVGO) is mounting a comeback from its 6% earnings report drop.
Tesla (TSLA) is rising within the consumer cyclical group as investors prepare for its upcoming Robotaxi launch. CEO Elon Musk has tentatively scheduled the debut for June 22. “We are being super paranoid about safety, so the date could shift,” said Musk on X.
On the other hand, T-Mobile (TMUS) is down by nearly 3% following a Handelsblatt report that its CEO, Mike Sievert, could be replaced by COO Srini Gopalan earlier than expected.
QQQ Stock Moves Higher with the Nasdaq 100
The Invesco QQQ Trust (QQQ) is an exchange-traded fund (ETF) designed to track the performance of the Nasdaq 100. As a result, QQQ is rising in correlation with the Nasdaq 100 today.
Wall Street expects more upside for QQQ stock and has assigned it with a “Moderate Buy” rating. During the past three months, analysts have issued an average QQQ price target of $619.71 for the stocks within the index, implying upside of 15.68% from current prices. The 102 stocks in QQQ carry 88 buy ratings, 13 hold ratings, and one sell rating.
