**Key Points:**
The Nasdaq-100 Index, which comprises 100 of the most valuable non-financial companies listed on the Nasdaq Stock Exchange, is currently down 3% from its all-time high as of June 30, 2026. This decline is attributed to a sluggish performance from key technology stocks, particularly the “Magnificent Seven,” which include major players like Microsoft, that have experienced significant drops—Microsoft alone has plummeted over 23%.
Despite the current downturn, the Invesco QQQ Trust (NASDAQ: QQQ), an ETF that tracks the Nasdaq-100, has historically shown resilience with an average annual return of 11% since its inception in 1999. The index’s composition includes successful semiconductor stocks that have doubled in value this year, providing a counterbalance to the tech giants’ struggles. Investors are advised that historical market trends suggest buying opportunities during downturns may yield positive long-term returns, particularly as many of the “Magnificent Seven” now sport attractive valuations, with Nvidia trading at a P/E ratio of 29.8, significantly lower than its historical average.
5 Stocks Our Experts Predict Could Double In the Next Year
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