Invesco QQQ Trust Sinks 4.2% in June as SMH Warns of Pullback
QQQ•Invesco QQQ Trust Series 1 slid 4.2% in June, marking its biggest monthly drop since February 2025 as funds shifted into semiconductors. The VanEck Semiconductor ETF logged a bearish divergence and two weekly support breaks in four weeks, signaling potential QQQ pullback ahead.
1. QQQ June Performance
Invesco QQQ Trust Series 1 declined 4.2% in June, its largest monthly loss since February 2025, driven by investor rotation into semiconductor stocks.
2. Semiconductor ETF Warning Signs
VanEck Semiconductor ETF (SMH) exhibited bearish momentum divergence and closed below prior week support twice in four weeks, indicating a potential sector peak that could spill over into broader tech ETFs.
3. Impact on QQQ Outlook
Technical weakness in SMH and sustained capital spending concerns at major Big Tech components suggest QQQ may undergo a corrective pullback before resuming its bull-market trend.
4. Big Tech Capex Pressure
Alphabet raised its annual capital expenditure forecast by $5 billion to $180–190 billion for AI development, cloud expansion and chip projects, contributing to investor caution across QQQ’s top holdings.
