Invesco QQQ Trust plunged 5.3% on Friday as Nasdaq 100 tumbled 4.77%, marking its steepest drop since April 2025, driven by chip stock losses and rising Treasury yields. Meanwhile, SpaceX will join the Nasdaq-100 later this year, providing a mega-cap growth catalyst before its eventual S&P 500 inclusion.
The Invesco QQQ Trust fell 5.3% on Friday as the Nasdaq 100 index plunged 4.77%, marking its worst session and week since April 2025. Losses were exacerbated by a 10% tumble in the VanEck Semiconductor ETF and rising Treasury yields above 4.5%.
Weakness in mega-cap technology shares and chipmakers, including Broadcom (-8%), Micron (-13%), ASML (-7%) and Intel (-12%), drove the sell-off after U.S. nonfarm payrolls exceeded forecasts at 172,000, fueling rate-hike expectations. The S&P 500 and Dow also slid 2.64% and 1.35%, respectively.
SpaceX was rejected from a fast-track S&P 500 entry and won’t join that index until mid-2027, but will be added to the Nasdaq 100 and Russell 1000 much sooner. Its inclusion is expected to bolster QQQ’s exposure to a mega-cap growth catalyst.
Investors face heightened volatility in the short term due to broader market and interest rate pressures, while gaining a potential growth boost from SpaceX’s upcoming addition. QQQ funds may see inflows as passive managers adjust holdings for the next Nasdaq-100 reconstitution.
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