Nasdaq-100 Nears 33,578 as Invesco QQQ Posts 20% YTD Gain
Updated
Updated · The Motley Fool · Jun 4
Nasdaq-100 Nears 33,578 as Invesco QQQ Posts 20% YTD Gain
3 articles · Updated · The Motley Fool · Jun 4
Summary
The Nasdaq-100 has jumped 33% since April 1, wiping out its first-quarter correction and leaving both the index and the Invesco QQQ ETF up about 20% year to date as of June 1.
AI-driven earnings growth has powered the rebound, helping justify richer prices even as the Nasdaq-100’s price-to-earnings ratio climbed to about 37, its highest level since late 2024.
That valuation leaves a key risk: when the index last traded near 38 times earnings in December 2024, it soon fell roughly 23% to around 17,000 by early April 2025.
QQQ still carries a strong long-term record, with annualized returns of 17% over five years, 21% over 10 years and 11% since its 1999 launch, but investors are being urged to watch valuations closely.