The Invesco QQQ ETF (QQQ), which tracks the tech-heavy Nasdaq 100 index (NDX), closed below its 50-day moving average on Monday for the first time in just over three weeks. The ETF was down another 0.83% as of 3:30 p.m. New York time on Tuesday.
The ETF, The world’s fifth-largest exchange-traded fund, ended Monday at 519.87, marking its first finish under its 50-day moving average of 523.58 since concluding at 518.11 on February 3. The Invesco QQQ ETF is only down 3.9% from its all-time intraday high of 540.81 points.
While QQQ consists of 102 separate holdings, its top 10 holdings together represent 50.05% of its portfolio concentration. Nvidia (NVDA) is the ETF’S second largest holding at 8.26% behind Apple (AAPL) at 9.31%.
I mention Nvidia here, because the company is set to report earnings tomorrow, Wednesday. And those results will continue the downward slide in tech stocks or reverse it.
Investors are clearly nervous heading into the company’s earnings-—Nvidia shares have fallen 7% in the past two trading days and the stock was down another 1.58% on Tuesday heading into the close of trading. The last time the stock had a run this bad leading into earnings the stock fell 9% in the four days leading into its fourth-quarter results a year ago. Nvidia shares then surged 16% after earnings were released and the Nasdaq jumped 3%.
