Nasdaq-100 Breadth Declines Spark 20% Correction Concern; Invesco QQQ Trust Up 1.07%
Gita Gopinath argued that a 150-day, 15% global tariff cannot shrink persistent US trade deficits and denied a balance-of-payments crisis, coinciding with a 1.07% rise in Invesco QQQ Trust ETF. Separately, Nasdaq-100 breadth has plunged, with the index down 6% from its peak, hinting at a possible 20% correction.
1. Gopinath Rejects Tariff Effectiveness
Harvard Professor and former IMF deputy managing director Gita Gopinath argued that the administration’s 150-day, 15% global tariff will be ineffective at reducing persistent US trade deficits and that the US is not experiencing a balance-of-payments crisis. Following her remarks, the Invesco QQQ Trust ETF advanced 1.07% on the day.
2. Nasdaq-100 Breadth Decline Signals Correction
Technical indicators show that the number of Nasdaq-100 constituents trading above their 200-day moving average has fallen sharply, echoing breadth declines that preceded major corrections in 2021-22 and 2024. With the index already 6% below its all-time high, analysts warn that a full 20% correction may already be underway, posing downside risks for QQQ.