QQQM: Tech Earnings Drive ETF to New Highs

The Invesco NASDAQ 100 ETF (QQQM) reached a new record high due to the robust earnings growth of tech stocks. Mega and large-cap tech stocks are driving investor confidence, with earnings growth supporting high beta investing.

The Invesco NASDAQ 100 ETF (QQQM) reached a new record high on July 2, 2025, driven by the robust earnings growth of tech stocks. This performance underscores investor confidence in mega and large-cap tech stocks, which are driving the market's high beta investing environment. Despite geopolitical tensions and trade-related uncertainties, the tech sector continues to demonstrate resilience.

The Nasdaq 100, which is tracked by QQQM, has been disproportionately influenced by a small number of dominant tech stocks, collectively known as the Magnificent Seven. These companies—Meta Platforms Inc (META), Alphabet Inc (GOOGL), Amazon.com Inc (AMZN), Apple Inc (AAPL), NVIDIA Corp (NVDA), Microsoft Corp (MSFT), and Tesla Inc (TSLA)—represent over 40% of QQQM's overall weight [1].

The ETF's performance can be attributed to several factors. Semiconductor exemptions from tariffs have eased trade concerns, benefiting companies like Advanced Micro Devices Inc (AMD) and Nvidia (NVDA). Additionally, Apple's $100 billion U.S. investment in domestic manufacturing and increased capital expenditure by major U.S. cloud providers for AI infrastructure have bolstered investor confidence [1].

Moreover, the appointment of Stephen Miran to the Federal Reserve Board has fueled expectations of more dovish monetary policy, which historically benefits Nasdaq ETFs due to their growth bias and sensitivity to duration [1]. These factors have contributed to QQQM's 8.5% return in the past six months, outperforming the S&P 500's 5.3% [1].

Investors should remain vigilant about the potential risks associated with regulatory outcomes and geopolitical tensions. However, the combination of strong corporate fundamentals and supportive macroeconomic conditions suggests that Nasdaq-centric ETFs like QQQM are well-positioned to continue their upward trajectory.

References:
[1] https://finance.yahoo.com/news/qqq-friends-hit-highs-tech-175024111.html