Cathie Wood Yawns at Tariff Reversal as Nasdaq-100 ETF Climbs 0.88%; Russell 2000 ETF Momentum Falls
Cathie Wood said equity markets barely reacted to the Supreme Court’s 6-3 strike-down of Trump’s emergency-law tariffs while QQQ jumped 0.88% to $608.81 and SPY advanced 0.72%. Separately, Russell 2000 momentum fell below its 50-day moving average, signaling small-cap weakness that could pressure Nasdaq-100 leadership.
1. Market Reaction to Tariff Reversal
ARK Invest CEO Cathie Wood said the Supreme Court’s 6-3 decision to invalidate Trump’s emergency-law tariffs barely moved equities, noting QQQ rose 0.88% to $608.81 while SPY gained 0.72%. She attributed Friday’s volatility to algorithmic trading rather than fundamental shifts, predicting tariff removal will boost U.S. growth.
2. Russell 2000 Momentum Decline
The Russell 2000 ETF maintained its 50-day moving average but saw momentum indicators dip below that level, pointing to weakening small-cap leadership. This technical signal suggests small caps may underperform, which could foreshadow broader market softness.
3. Implications for Nasdaq-100 ETF
Given the Russell 2000’s faltering momentum and muted response to policy relief, Nasdaq-100 ETF performance may face headwinds if small-cap weakness spreads. Investors tracking technology-heavy benchmarks should monitor shifts in small-cap momentum as a potential early warning for broader equity trends.