The Invesco QQQ Trust, which tracks the Nasdaq-100 Index, experienced a sharp 5.08% decline in a 24-hour period, reflecting growing investor concerns over the Trump administration's aggressive tariff policies and their potential impact on the U.S. economy.
The plunge comes as President Donald Trump's top economic advisers doubled down on their tariff strategy, despite last week's market turmoil. Treasury Secretary Scott Bessent, speaking on NBC's "Meet the Press," dismissed recession worries and vowed to "hold the course" on tariffs. He revealed that over 50 countries are seeking to negotiate better deals, but warned that quick resolutions are unlikely due to decades of "bad behavior" towards the U.S.
The market's reaction has been severe, with major indices experiencing their largest weekly percentage drops since the start of the pandemic in March 2020. Former Clinton administration Treasury Secretary Larry Summers called the tariff plan "the biggest self-inflicted wound we've put on our economy in history" and warned of potential trouble ahead. Despite the administration's optimism, concerns persist about inflation, slower growth, and the possibility of a recession, factors that are likely contributing to the QQQ's significant decline.
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