The Nasdaq-related exchange traded fund took charge as technology stocks climbed Friday.
The Invesco QQQ Trust (NASDAQ: QQQ), which tracks the Nasdaq-100 Index, increased 1.3% on Friday.
Meanwhile, the Nasdaq Composite was on pace for a 6.9% weekly gain.
U.S. equities have been rebounding after multiple weeks of declines. While investors try to assess the fallout from the Russia-Ukraine war, many believe that the recent volatility will not affect the underlying fundamentals.
“The U.S. economy is on a really solid foundation right now, and it’s a key reason why the Fed is feeling comfortable in moving forward with their tightening process without potentially putting the U.S. in a recessionary type of environment,” Jeff Schulze, investment strategist at ClearBridge Investments, told the Wall Street Journal.
Meanwhile, the equities market on Friday also marked the so-called triple witching where traders unwind positions in futures and options contracts before they expire, which could lead to large unexpected moves, Reuters reports.
“The bottom has been touched, and technology is down such a significant amount from its highs, it was bound to bring in people looking for opportunities,” Rick Meckler at Cherry Lane Investments, told Reuters.
The markets were also on track for their biggest weekly gain since November 2020 in hopes that Russia-Ukraine peace talks and the anticipated Federal Reserve interest rate hike could help bring clarity on the road ahead.
Investors were also watching talks between U.S. President Joe Biden and his Chinese counterpart Xi Jinping over the Ukraine crisis.
“The geopolitical concerns are responsible for the vast majority of the market movement this week, despite the fact that the Fed hiked interest rates,” Randy Frederick, vice president of trading and derivatives for Charles Schwab, told Reuters. “China is kind of involved a little bit more today than normal, and that’s obviously a concern.”
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