QQQQQQ

Government bond yields, which track the interest rates the U.S. pays to borrow money, have climbed back to levels not seen since before the 2008 financial crisis. This move was triggered by stronger-than-expected manufacturing data and rising oil prices, which suggest the economy is still running hot.

For an index like the QQQ that is packed with high-growth tech companies, rising yields are often a headwind. When safe government bonds pay more, the future profits of tech firms become less valuable to investors today, and the cost of borrowing to build data centers and AI infrastructure goes up.

Source: Bloomberg Markets and Finance

Shares of memory chip makers like Micron and Western Digital rose as the U.S. government signaled fresh support for domestic production. This move aims to secure the supply of parts needed for AI hardware during a global shortage. Because the QQQ is heavily weighted toward the semiconductor industry, strength in these hardware names helps support the broader index. It reinforces the idea that the physical building blocks of AI remain a high-priority, government-backed sector.

Microsoft reported quarterly revenue of $90 billion, topping what analysts expected. The growth was led by its Azure cloud business and Copilot, its AI assistant tool for businesses.

As one of the largest holdings in the QQQ, Microsoft's performance often dictates the direction of the entire fund. These results show that the massive investments in AI infrastructure are beginning to turn into real software revenue, which is the core reason to own this index over the long term.