5 Stocks That Powered Nasdaq ETF's Outperformance Last Week

Wall Street rebounded strongly last week on signs of de-escalation in the U.S.-China trade war and Trump’s assurance of not removing Federal Reserve Chair Jerome Powell. The rally was broad-based, but the technology sector took the lead. The tech-heavy Nasdaq Composite Index outperformed, gaining 6.7% last week. The S&P 500 climbed 4.6% while the Dow Jones gained 2.5%.

With last week’s gains, the Nasdaq Index returned to positive territory in April. Fidelity Nasdaq Composite Index ETF ONEQ, which tracks the Nasdaq Composite Index, and Invesco QQQ QQQ, which serves as a proxy to the index but tracks the Nasdaq 100 Index, gained more than 9% each.

While most of the stocks in the QQQ ETF portfolio have rebounded strongly, we have highlighted five that were at the forefront of the rally last week. These are Microchip Technology Inc. MCHP, Palantir Technologies Inc. PLTR, Tesla TSLA, AppLovin Corporation APP and Micron Technology MU.

Trade Tensions Ease

According to several reports, China might suspend its 125% tariff on some U.S. goods, which boosted market sentiment. The potential tariff cuts would target key sectors, including medical equipment and industrial chemicals such as ethane, a crucial material for plastic production. China is also weighing the removal of tariffs on aircraft leasing payments, a major expense for domestic airlines (read: Tariff Relief Talks Lift Tech ETFs, Stocks: What's Ahead?).

In an interview with Time magazine on Friday, Trump said he expects many trade deals over the next three to four weeks.

Fed Rate Cuts Hints

Trump, who criticized Federal Reserve Chairman Jerome Powell by calling him a “major loser,” clarified that he had no plans to oust him before his term ends in May 2026.

While Powell emphasized a wait-and-see approach to further interest rate cuts in response to President Trump’s tariffs, a few other Fed officials signaled openness to potential reductions. Federal Reserve Bank of Cleveland President Beth Hammack, in a CNBC interview, said a cut as early as June could be possible.

Earnings Boost

Netflix (NFLX) reached a historic milestone last week, with its stock price soaring to an all-time high of nearly $1,101. This surge reflects the company’s robust performance and investor confidence in its growth trajectory, solidifying its position as a leader in the streaming industry. The solid trend is likely to continue given the company’s trillion-dollar ambition and analysts’ increasing target price (read: Netflix Soars to All-Time High: 5 ETFs to Ride the Surge).

Though Tesla reported dismal first-quarter 2025 results, missing estimates for earnings and revenues, shares climbed after CEO Elon Musk injected optimism by reaffirming the company’s goals for the launch of robotaxis and affordable vehicles. Musk’s promise to refocus on his business rekindled investor hopes. Meanwhile, Google parent Alphabet (GOOG, GOOGL) announced robust first-quarter 2025 results, topping estimates on both earnings and revenues. The company also hiked its dividend by 5% and authorized another $70 billion in stock buybacks.

Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

This ETF provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 59.5% of the assets while consumer discretionary makes up for 20.2% share.

QQQ is one of the largest and most popular ETFs in the large-cap space with an AUM of $286.8 billion and an average daily volume of more than 63 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: 5 Undervalued Growth ETFs to Play on Cues of Easing Trade Tensions).

Best Stocks of QQQ

Microchip Technology develops and manufactures microcontrollers, memory and analog and interface products for embedded control systems, which are small, low-power computers designed to perform specific tasks. The stock soared 21.6% last week and saw a positive earnings estimate revision of a penny for the fiscal year (ending March 2026) over the past seven days. Its earnings are expected to decline 13.4% this fiscal year. Microchip Technology has a Zacks Rank #3 (Hold).

Palantir Technologies builds and deploys software platforms for the intelligence community, principally in the United States. The stock soared about 20% last week and has an estimated earnings growth rate of 34.1% this year. Palantir Technologies has a Zacks Rank #5 (Strong Sell).

Tesla is an electric vehicle (EV) maker, which has evolved into a dynamic technology innovator. The stock jumped 18.1% last week and has an estimated earnings decline rate of 22.3% for this year. Tesla has a Zacks Rank #5 (read: Should You Buy Tesla ETFs Post Q1 Earnings Miss?).

AppLovin provides a technology platform that enables developers to market, monetize, analyze and publish their apps. The stock has gained 16.2% and has an estimated earnings growth rate of 47.46% for this year. It has a Zacks Rank #3.

Micron Technology has established itself as one of the leading worldwide providers of semiconductor memory solutions. The stock was up about 16% last week and has an estimated earnings growth of 426.9% for the fiscal year (ending August 2025). It has a Zacks Rank #3.

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Micron Technology, Inc. (MU) : Free Stock Analysis Report

Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

Invesco QQQ (QQQ): ETF Research Reports

AppLovin Corporation (APP) : Free Stock Analysis Report

Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports

Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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