Invesco QQQ Trust’s Stellar Monthly Performance

The stock market rally has propelled the Invesco QQQ Trust to its best monthly performance since July 2022. Tracking the Nasdaq 100 index and including renowned companies such as Apple, Tesla, and Nvidia, this widely held exchange-traded fund (ETF) has surged 11.1% in November. Furthermore, the ETF has continued its upward trajectory with an additional 0.2% gain in premarket trading on Thursday.

The QQQ’s impressive performance can be primarily attributed to the favorable macroeconomic environment. Declining inflation rates have prompted traders to swiftly adjust their expectations for future interest rates. Consequently, the market is now pricing in several rate cuts by the Federal Reserve in the coming year.

Tech stocks endured a turbulent period due to the Federal Reserve’s extensive campaign of rate hikes, which commenced amid sky-high inflation levels in March 2022. Elevated borrowing costs led to soaring Treasury yields, dampening demand for riskier investments like tech stocks. However, with expectations of rate cuts as early as March, yields have plummeted, consequently boosting the tech sector and propelling the QQQ.

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