Invesco QQQ Slips as Tech Weighs on S&P 500 Amid High Yields

The S&P 500 slipped at midday on Thursday, with the Nasdaq 100 and the Invesco QQQ Trust, Series 1 (NASDAQ: QQQ) also declining. The broader market was pressured by rising Treasury yields and a dip in Micron Technology, despite the chipmaker reporting record quarterly results.

Micron Technology Inc. (NASDAQ: MU) fell 1.6% after reporting fiscal fourth-quarter revenue of more than $54 billion. The company guided first-quarter revenue to $61.5 billion. However, investors weighed the print against surging interest rates, specifically the 10-year Treasury yield, which hovered near 5.25%.

The 10-year yield fell 5 basis points to 5.24% by midday, retreating after briefly touching 5.34% earlier in the session, its highest level since April 2002. The 30-year yield eased 3 basis points to 5.61%, after earlier reaching about 5.67%, its highest since July 2002. Minneapolis Federal Reserve President Neel Kashkari stated that inflation is still too high despite a cooler PCE reading, reinforcing expectations that the central bank is not done tightening policy.

Energy stocks led the S&P 500 sectors, with the Energy Select Sector SPDR Fund (NYSE: XLE) up 1.5%. Meanwhile, the Materials Select Sector SPDR Fund (NYSE: XLB) fell 1.2%, and the Health Care Select Sector SPDR Fund (NYSE: XLV) lost 1.0%.

On the positive side, Accenture plc (NYSE: ACN) surged 18.2% after reporting fiscal fourth-quarter adjusted EPS of $3.29 versus the $3.18 consensus, on revenue of $18.68 billion versus the $18.03 billion estimate. The company guided fiscal 2027 revenue growth of 3% to 6% in local currency and EPS of $14.39 to $14.81. The strong report lifted IT services peers, including Cognizant Technology Solutions Corp. (NASDAQ: CTSH), which was up 6.7%.

Other notable movers included Synopsys Inc. (NASDAQ: SNPS), which climbed 8.8% after announcing a licensing deal worth more than $1 billion with Amazon Web Services and a partnership with OpenAI on AI chip design. AI networking stocks also rallied, with Coherent Corp. (NYSE: COHR) rising 11.0% and Lumentum Holdings Inc. (NASDAQ: LITE) gaining 9.2%.

In other sectors, Fermi Inc. (NASDAQ: FRMI) fell 5.3% to a fresh 52-week low, while Tempus AI Inc. (NASDAQ: TEM) slid 4.7%. AppLovin Corp. (NASDAQ: APP) lost 4.5% and Versant Media Group Inc. (NASDAQ: VSNT) fell 4.3%.