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QQQ ETF explained: the Nasdaq-100 in one ticker

QQQ is the Nasdaq-100 packed into one ticker. When people say "tech had a big day", QQQ's chart is often what they're looking at.

Market guide · 6-minute read · Updated 2026-10-21

At a glance

Invesco runs QQQ. It launched in March 1999 and is one of the most traded ETFs in the US.

This page explains how QQQ tends to move. It isn't a recommendation to buy or sell it.

How it works

QQQ holds the stocks of the Nasdaq-100 in the index's weights. When the index moves 1%, QQQ moves about 1%, minus a small yearly fee.

Because the index is heavy in a handful of giant companies, so is QQQ. A few names can decide its day.

What moves it

• Big tech earnings. The largest members usually report after the 4:00 pm ET close. QQQ reacts in after-hours trading and at the next open.
• Bond yields. Fast-growing companies are valued on profits far in the future. Higher rates make those future profits worth less today, so QQQ often reacts strongly to rate moves.
• The Fed. FOMC statement 2:00 pm ET, press conference 2:30 pm.
• Inflation and jobs. CPI and the jobs report at 8:30 am ET can shift rate expectations before the open.
• Tech themes. Chips, cloud and AI news can move many members together.

When it's busiest

• 9:30 – 10:30 am ET: the open, with big candles and fast turns.
• Midday: usually calmer.
• 3:00 – 4:00 pm ET: volume returns into the close.
• Earnings evenings: the biggest after-hours moves of the year often come in earnings season.

Extended hours are thinner, with wider spreads. US hours in ET stay the same all year.

Its personality

• Swings more than SPY. In percentage terms, QQQ's daily moves are often bigger than SPY's, in both directions.
• Concentrated. A few companies can move it more than the other ninety-plus combined.
• Rate-sensitive. A jump in bond yields can push it down on a day with no company news.
• Liquid. Huge volume keeps spreads small during regular hours.

Reading it with our method

Mark the last places price turned around on the daily chart. Higher highs and higher lows, or lower ones? Trade only with that direction on your smaller chart.

Use the body-close rule. A level only breaks when a candle body closes past it. QQQ's open often throws long tails both ways.

Set your stop from the chart, then size from it. Example: you risk 100 units on a trade, and your stop is 4.00 below entry. 100 ÷ 4 = 25 shares. A math example, not a promise. A wider stop on a jumpier fund means fewer shares, so your risk stays the same. The position size calculator does this in seconds.

Common mistakes

• Using SPY-sized stops. QQQ often needs more room. More room means a smaller size.
• Holding through a giant's earnings without knowing it. Check the earnings dates of the top members.
• Thinking it's "all tech". It's mostly tech, but it also holds retail, health care and other non-financial companies.
• Treating after-hours moves as settled. A big after-hours jump can shrink or grow by the next open.

Questions