Invesco QQQ Trust ETF declines 0.10% premarket as Iran strikes US bases and CPI looms
Futures for the Nasdaq 100–tracking Invesco QQQ Trust ETF retreated 0.10% in Wednesday premarket trade, following U.S. base strikes by Iran across five Middle Eastern nations. Investors also braced for a 2.5% year-over-year February CPI print while CME FedWatch signals a 99.4% probability of unchanged rates in March.
1. Premarket Performance
In premarket trading, the Nasdaq 100–tracking Invesco QQQ Trust ETF fell 0.10%, underperforming the S&P 500–tracking ETF which slipped 0.11%. Futures for the Dow Jones and S&P 500 also posted declines of around 0.09% and 0.02% respectively, signaling broad risk-off sentiment.
2. Geopolitical Impact
A series of strikes by Iran on U.S. military bases across five Middle Eastern nations sparked heightened volatility, pushing investors toward caution in growth-oriented assets. A projectile ignition on a cargo ship in the Strait of Hormuz further fueled concerns about potential supply disruptions.
3. Inflation Data and Fed Outlook
Market participants are bracing for a February consumer price index year-over-year reading near 2.5%, while the CME FedWatch tool indicates a 99.4% probability of the Federal Reserve maintaining current rates in March. Treasury yields reflect this outlook, with the 10-year at 4.16% and the two-year at 3.59%.