Nasdaq 100 ETF Slides with Q4 GDP at 1.4% and PCE Hits 2.9%
Nasdaq 100 ETF pre-market trading fell about 0.5% after U.S. Q4 GDP grew just 1.4%, missing the 2.5% forecast and dropping 300 basis points from Q3’s 4.4% pace. December PCE inflation accelerated to 0.4% month-over-month and 2.9% year-over-year—the highest headline annual rate since March 2024.
1. Pre-market Drop
In pre-market trading, Nasdaq 100 futures fell 77 points, dragging key indexes lower with the Dow down 86 points, S&P 500 off 15 points and Russell 2000 sliding 15 points. This dynamic weighed on the Nasdaq 100 ETF, which was down roughly 0.5% before the open.
2. Q4 GDP Misses Forecast
The initial Q4 GDP reading at +1.4% trailed the 2.5% consensus and sat 300 basis points below Q3’s final 4.4% figure, marking the second-lowest growth rate of 2025. The longest government shutdown in U.S. history likely subtracted nearly a full percentage point from this headline figure.
3. December PCE Inflation Rises
Headline PCE gained 0.4% month-over-month, double the 0.2% pace of the prior five months, while core PCE also rose 0.4%. Year-over-year, headline PCE hit 2.9%, its highest since March 2024, and core PCE accelerated to 3.0%, topping the Fed’s 2.0% target by 100 basis points.
4. Market Outlook
Investors will look to February flash PMI readings for services and manufacturing as well as new home sales for further growth signals. Court decisions on tariff policies and upcoming economic data are poised to influence monetary policy expectations and technology-focused ETF performance in the near term.