After a volatile first quarter that spilled over into the start of the second quarter, the Nasdaq 100 is starting to see some signs of life. Whether or not it can sustain the current rally is anyone’s guess, but bargain shoppers are starting to peruse the Nasdaq 100 again for big tech sales.
The index is down 23% while the CBOE Volatility Index (VIX) is up about 60%, underscoring how volatile 2022 has been thus far for equities and bond investors alike. Inflation fears have received much of the finger pointing, with rising rates getting a fair share as well, but the last couple of positive trading sessions could be re-instilling confidence in stocks again.
Monday’s trading session saw the Nasdaq gain about 3% while the Dow Jones Industrial Average rallied 400 points. It’s a step in the right direction to get back to positive territory.
“Our inputs today support the kind of momentum that we saw on Friday and a continuation of that,” said Art Hogan, chief market strategist at National Securities. “But the most important thing for investors is you get to a point where you’ve priced in a lot of worst case scenarios.”
Investors Sinking Teeth Back Into FAANGs?
Big tech names like Meta (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOGL) were soaring higher amid social distancing measures during the height of the pandemic. They’ve been hit the hardest in 2022 as inflation fears have permeated through the capital markets, but investors could be taking a second look at them as value options.
Another option is to look at exchange traded funds (ETFs) like the Invesco NASDAQ 100 ETF (QQQM ) to get exposure to big tech’s heaviest hitters. QQQM is based on the NASDAQ-100 Index, which includes securities of 100 of the largest domestic and international non-financial companies listed on the Nasdaq.
At a 0.15% expense ratio, the fund can also be used as a trader’s tool like its bigger brother, the Invesco QQQ Trust (QQQ ). In QQQ, investors will see familiar names like the aforementioned Apple, Google, Facebook, Amazon, and Microsoft.
For more news, information, and strategy, visit the Nasdaq Investment Intelligence Channel.
