Technology stocks soared Wednesday following upbeat earnings from Intel (NasdaqGS: INTC) while investors also positioned for quarterly results from Apple (NasdaqGS: AAPL) after the bell.
PowerShares QQQ (NasdaqGM: QQQ), an exchange traded fund (ETF) following the Nasdaq-100 Index, rallied more than 2% in afternoon trading as traders anxiously awaited results from iPhone maker Apple.
The Nasdaq Composite Index on Wednesday saw its largest one-day rise in six months.
Intel “knocked the cover off the ball” with first-quarter earnings and outlined second-quarter guidance that easily exceeded Wall Street’s target, said Joel Achramowicz, tech analyst at Blaylock Robert Van LLC.
The rally in Intel shares lifted tech-heavy ETFs such as PowerShares QQQ, which has nearly 2% in the stock.
However, Apple earnings could have a much bigger influence on the ETF because the stock accounts for over 20% of assets. Yet Apple will soon see its weighting in the Nasdaq-100 fall dramatically due to a special index rebalance.
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