The Invesco QQQ Trust (QQQ) closed at $518.11 on February 3, 2025, down 0.8% as the Nasdaq-100 Index faced pressure from escalating trade tensions and a stronger U.S. dollar. The Nasdaq-100, which fell 0.84% to 21,297.58, is particularly vulnerable due to its concentration in high-valuation tech stocks like Apple, Nvidia, and Microsoft. President Trump's announcement of new tariffs—25% on imports from Canada and Mexico and 10% on Chinese goods—has sparked fears of a trade war, leading to concerns about supply chain disruptions and increased costs for tech companies. The elevated price-to-earnings ratios of these companies make them susceptible to multiple compression as investors reassess the sustainability of their valuations. Additionally, the stronger U.S. dollar, driven by safe-haven flows, reduces the value of foreign earnings, further pressuring tech sector profitability.