Invesco QQQ Trust Series 1 (NASDAQ:QQQ) shares are trading higher by 1.16% to $372.44 Wednesday afternoon. Major indexes are higher after June CPI data showed softer-than-expected inflation.
QQQ predominantly consists of technology-focused and growth-oriented companies. Lower inflation is generally favorable for growth stocks as it can lead to reduced input costs, improved profitability and enhanced investor appetite for innovative companies.
With milder inflation, investors may view QQQ's underlying holdings more favorably, potentially driving up the ETF's stock price.
What Happened?
U.S. CPI inflation in June decelerated more than anticipated, reinforcing investor expectations of a single rate hike by the Federal Reserve followed by a halt to its tightening cycle. The Bureau of Labor Statistics' data reveals a drop in the annual inflation rate from 4% in May to 3% in June, slightly below the average economist forecast of 3.1%.
This marks the twelfth consecutive month of declining inflation and the lowest reading since March 2021...Read More
According to data from Benzinga Pro, QQQ has a 52-week high of $374.19 and a 52-week low of $254.26.
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