Invesco QQQ Trust Rises 0.9% as Administration Imposes 10% Global Tariff
QQQ rose 0.9% after the Supreme Court struck down presidential IEEPA tariff authority, prompting a replacement 10% global levy while retaining existing Section 232 and 301 duties. U.S. fourth-quarter GDP slowed to a 1.4% annualized pace and core inflation hit a 3.0% annual rate in December.
1. Supreme Court Ruling Spurs QQQ Rally
QQQ climbed 0.9% this week as the Supreme Court ruled IEEPA did not authorize presidential tariff authority, removing uncertainty over emergency levies and driving renewed investor interest in large-cap tech stocks.
2. Administration Imposes 10% Global Tariff
In response to the ruling, the administration enacted a 10% global tariff under Section 122 of the Trade Act of 1974 while confirming that Section 232 and 301 tariffs remain in full force, expanding trade cost exposure for Nasdaq 100 components.
3. GDP Slowdown and Inflation Acceleration
Fresh data showed U.S. GDP grew at a 1.4% annualized pace in the fourth quarter, down from 4.4%, and the Federal Reserve’s preferred inflation gauge accelerated to a 3.0% annual rate in December, raising concerns over potential rate hikes and sector rotation.