The Nasdaq 100 Index and its top ETFs like QQQ, QQQM, and JEPQ suffered a harsh reversal last week as jitters on the ongoing artificial intelligence (AI) boom continued. It dropped to a low of $25,195, down sharply from the year-to-date high of $26,143. This article explores some of the top catalysts for the index and its ETFs this week.
Nasdaq 100 Index to reach the recent reconstitution
One of the key catalysts for the Nasdaq 100 Index and its ETFs is the recent reconstitution, which introduced new companies and saw some popular names removed.
The new companies in the blue-chip index are firms like Ainylam Pharmaceuticals, Ferrovial, Insmed, Monolithic Power, Seagate, and Western Digital. These stocks will likely rise this week as investors anticipate more purchases by funds that track the index.
These companies will replace top companies like Biogen, CDW, GlobalFoundries, Lululemon, On Semiconductor, and The Trade Desk. Most of these companies have underperformed the broader index this year as they faced numerous challenges.
READ MORE: Lululemon shares jump after earnings beat and CEO exit announcement
A notable company that did not join the Nasdaq 100 Index was Walmart, the biggest retailer in the United States, which decamped from the NYSE to the Nasdaq this year. It missed the inclusion because of the time when it entered the index, but chances are that it will do so in the next reconstitution in 2026.
Micron earnings
The other main catalyst for the Nasdaq 100 Index and its ETFs, like QQQ and JEPQ is the upcoming Micron earnings, which will provide more information about the ongoing AI boom.
Micron is a major player in the industry, where it provides products known as DRAM and NAND memories that have seen their demand surge this year because of the ongoing AI boom.
As a result, the Micron stock price has jumped by 137% this year, bringing its market capitalization to over $271 billion. The surge happened as the company’s revenue and profitability surged.
The most recent results showed that Micron’s cloud memory revenue rose to $4.5 billion, representing 40% of the total revenue. Its core data, mobile & client, and auto and embedded revenues rose to $1.57 billion, $3.7 billion, and $1.43 billion, respectively.
Analysts are optimistic that Micron’s business did well in the first quarter of the year, with the revenue expected to come in at $12.84 billion, up by 47% from the same period last year. Its earnings-per-share is expected to be $3.9, up from the previous $1.39.
These results come a week after two important companies in the AI industry, Oracle and Broadcom, published results. These results sent jitters in the stock market, with the Nasdaq 100 Index falling by thousands of points.
Bank of Japan (BoJ) interest rate decision and key macro data
The other key catalyst for the Nasdaq 100 Index will come from Japan, where the country’s central bank will meet and deliver its interest rate decision.
Economists expect the bank to hike interest rates for the first time in eleven months. Polymarket data shows that odds to a hike have jumped to 98%, a move that the central bank governor has largely supported.
The BoJ is one of the biggest central banks globally and its actions have always had an impact on the world economy. For example, the stock and crypto markets crashed last year when it made its first interest rate hike in decades.
In addition to the BoJ rate hike, the Nasdaq 100 Index will react to some key macro data from the United States, including the upcoming non-farm payrolls (NFP) and consumer inflation.
These numbers are important as they come a week after the Fed slashed interest rates by 0.25% and hint that it will deliver one more in 2026. Investors will watch the upcoming data to help them predict what to expect in the coming meetings.
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