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Nasdaq ETF (QQQ) Hits New 52-Week High
For investors seeking momentum, Invesco QQQ Trust (QQQ - Free Report) is probably on radar. The fund just hit a 52-week high and is up 34% from its 52-week low price of $254.26/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
QQQ in Focus
QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. It charges 20 bps in annual fees. (See: all the Large-Cap Growth ETFs here).
Why the Move?
The Nasdaq has been an area to watch lately, given the surge in the technology sector powered by Nvidia (NVDA). The chipmaker reported blockbuster first-quarter fiscal 2024 earnings and offered a bullish revenue outlook for the current quarter on the excitement surrounding an investment boom in artificial intelligence (AI) technologies. NVDA was up 24.4% at the close, marking the largest one-day percentage gain since 2016. This has pushed Nvidia to an all-time high and closer to the $1 trillion market cap.
More Gains Ahead?
Currently, QQQ has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. However, many spaces that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.