Invesco QQQ Tumbles 2.21% Premarket After Strait of Hormuz Closure Sparks Sell-Off
Tehran closed the Strait of Hormuz, triggering a 2.17% drop in the Nasdaq 100, a 1.66% decline in the S&P 500 and lifting 10-year Treasury yields to 3.09%. Invesco QQQ Trust ETF tumbled 2.21% in premarket trading as investors braced for a down open.
1. Geopolitical Tensions and Futures
Tehran’s closure of the Strait of Hormuz on Tuesday prompted a sharp sell-off in futures, with the Nasdaq 100 falling 2.17%, the S&P 500 down 1.66% and the Dow Jones sliding 1.45% as global markets reacted to heightened Middle East conflict.
2. Bond Yields and Fed Rate Outlook
The 10-year U.S. Treasury yield climbed to 3.09% and the two-year yield rose to 3.54% as investors reassessed risk, while futures markets continued to price in a 97.3% probability of the Federal Reserve holding rates steady in March.
3. QQQ Premarket Performance
In premarket trading, Invesco QQQ Trust ETF fell 2.21%, underperforming broader benchmarks as Nasdaq futures led losses and investor sentiment turned risk-off ahead of the opening bell.
4. Broader Market Impact
While energy and industrial sectors outperformed, consumer staples, discretionary and healthcare shares drove the wider S&P 500 lower, highlighting sector rotation pressures amid renewed geopolitical uncertainty.