The Nasdaq 100 Index faced downward pressure as chipmakers were hit by renewed scrutiny over US-China trade relations. The US government's decision to review the Economic and Trade Agreement with China has introduced uncertainty, particularly impacting the semiconductor sector, which is highly sensitive to international trade dynamics. This comes amid President Donald Trump's potential softening of his tariff stance, while also pushing for economic policies aimed at growth and tax reduction. In the broader market, Treasury bonds rallied with declining yields as investors sought safe-haven assets amidst geopolitical tensions, and the dollar weakened, marking its worst week since November 2023.
The Invesco QQQ Trust (QQQ) experienced a decline, dropping 0.61% to $529.38 at 16:20 on Friday, January 24.