I believe Treasury yields will be the immediate driver of QQQ, with core CPI determining their direction. 📊
Friday's rebound was encouraging, but the stronger-than-expected payroll figures suggest the Federal Reserve may have less room to ease monetary policy.
If core CPI comes in below expectations, Treasury yields could retreat, supporting technology valuations and extending QQQ's recovery. Conversely, stubborn inflation could push yields higher and trigger another sell-off.
However, inflation is only part of the equation. Investors are increasingly questioning whether massive AI infrastructure investments can generate sustainable earnings and cash flow.
My view: A softer CPI reading could spark a short-term rally, but a lasting recovery requires both favourable bond yields and stronger evidence of AI profitability. I remain cautiously optimistic rather than outright bullish. 📈
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