Invesco QQQ Trust Slides 1.9% as Dow Hits Record on Banks and Industrials
QQQ•Invesco QQQ Trust fell 1.9% on June 16 as the Nasdaq 100 retreated and the Dow Jones Industrial Average rose 0.6% to a record high. Cooling oil below $80 per barrel and banking stocks (JPMorgan +3%) propelled industrial gains ahead of the Fed meeting.
1. Market Performance
Invesco QQQ Trust declined 1.9% on June 16, underperforming the S&P 500 and Nasdaq 100 which edged down 0.1% and 1.9% respectively, while the Dow Jones Industrial Average climbed 0.6% to 51,999.67. Technology weakness and semiconductor losses (SMH -4.6%) weighed on the ETF.
2. Sector Drivers
Banks and industrial stocks drove the Dow's rally, with JPMorgan Chase advancing more than 3% and Caterpillar gaining over 2%. Cooling oil prices, with Brent crude dipping below $80 per barrel for the first time since March, eased inflation concerns and supported materials and energy-related sectors.
3. Federal Reserve Outlook
Traders focused on the Federal Open Market Committee's policy decision due on Wednesday, with CME FedWatch indicating 99.6% odds of unchanged rates. Attention will center on Chair Kevin Warsh’s commentary regarding inflation expectations and future rate guidance.
