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Wall Street rebounded strongly last week on signs of de-escalation in the U.S.-China trade war and Trump’s assurance of not removing Federal Reserve Chair Jerome Powell. The rally was broad-based, but the technology sector took the lead. The tech-heavy Nasdaq Composite Index outperformed, gaining 6.7% last week. The S&P 500 climbed 4.6% while the Dow Jones gained 2.5%.
With last week’s gains, the Nasdaq Index returned to positive territory in April. Fidelity Nasdaq Composite Index ETF ONEQ, which tracks the Nasdaq Composite Index, and Invesco QQQ QQQ, which serves as a proxy to the index but tracks the Nasdaq 100 Index, gained more than 9% each.
While most of the stocks in the QQQ ETF portfolio have rebounded strongly, we have highlighted five that were at the forefront of the rally last week. These are Microchip Technology Inc. MCHP, Palantir Technologies Inc. PLTR, Tesla TSLA, AppLovin Corporation APP and Micron Technology MU.
Trade Tensions Ease
According to several reports, China might suspend its 125% tariff on some U.S. goods, which boosted market sentiment. The potential tariff cuts would target key sectors, including medical equipment and industrial chemicals such as ethane, a crucial material for plastic production. China is also weighing the removal of tariffs on aircraft leasing payments, a major expense for domestic airlines (read: Tariff Relief Talks Lift Tech ETFs, Stocks: What's Ahead?).
In an interview with Time magazine on Friday, Trump said he expects many trade deals over the next three to four weeks.
Fed Rate Cuts Hints
Trump, who criticized Federal Reserve Chairman Jerome Powell by calling him a “major loser,” clarified that he had no plans to oust him before his term ends in May 2026.
While Powell emphasized a wait-and-see approach to further interest rate cuts in response to President Trump’s tariffs, a few other Fed officials signaled openness to potential reductions. Federal Reserve Bank of Cleveland President Beth Hammack, in a CNBC interview, said a cut as early as June could be possible.
Earnings Boost
Netflix (NFLX) reached a historic milestone last week, with its stock price soaring to an all-time high of nearly $1,101. This surge reflects the company’s robust performance and investor confidence in its growth trajectory, solidifying its position as a leader in the streaming industry. The solid trend is likely to continue given the company’s trillion-dollar ambition and analysts’ increasing target price (read: Netflix Soars to All-Time High: 5 ETFs to Ride the Surge).
Though Tesla reported dismal first-quarter 2025 results, missing estimates for earnings and revenues, shares climbed after CEO Elon Musk injected optimism by reaffirming the company’s goals for the launch of robotaxis and affordable vehicles. Musk’s promise to refocus on his business rekindled investor hopes. Meanwhile, Google parent Alphabet (GOOG, GOOGL) announced robust first-quarter 2025 results, topping estimates on both earnings and revenues. The company also hiked its dividend by 5% and authorized another $70 billion in stock buybacks.
Let’s take a closer look at the fundamentals of QQQ.