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After the wild swings last month, the tech-heavy Nasdaq Composite Index has been gaining momentum lately and reached a new peak driven by tech rally. The Federal Reserve Chair Jerome Powell, testifying before Congress yesterday, gave a boost to growth investing.

Powell reiterated that the rising inflation is due to transitory or temporary factors, including supply bottlenecks, a rebound in spending, and very low year-ago inflation readings thanks to the pandemic. The Fed would not increase interest rates to curb inflation, but will instead prioritize a "broad and inclusive" recovery of the job market.

Additionally, optimism surrounding the economic recovery has been compelling investors to bet on the growth stocks like that of the technology sector. The Fed in its last FOMC meeting stated that rapid vaccinations have reduced the spread of COVID-19 in the United States, strengthening economic activity and employment. As such, it raised its GDP growth from 6.5% to 7% for this year, marking the fastest calendar-year expansion since 1984. The strong economy will continue to fuel demand in the sector.

However, the signals of a sooner-than-expected rate hike have not deterred the tech stocks, as investors believe that low interest rates will remain in place for at least more than a year and provide a huge boost to the sector.

As a result, Invesco QQQ (QQQ - Free Report), which serves as a proxy to the index, gained nearly 1.7% last week to an all-time high. Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

This ETF provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 48.4% of the assets, while communication services and consumer discretionary round off the next two spots. QQQ is one of the largest and most popular ETFs in the large-cap space with AUM of $167.6 billion and an average daily volume of around 38.2 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Though most of the stocks in the fund’s portfolio have delivered strong returns in a week, we have highlighted the five stocks in the ETF that led the way higher the last week with their respective positions in the fund’s basket:

Top-Performing Stocks in QQQ

Moderna Inc. (MRNA - Free Report): It is a clinical-stage pharmaceutical company, primarily focused on discovering and developing messenger RNA (mRNA) based therapies. The stock climbed 11.9% in a week and accounts for 0.63% in the fund’s basket. It has an expected earnings growth rate of more than 100% for this year and a Zacks Rank #3 (Hold).

Peloton Interactive Inc. (PTON - Free Report): This company creates fitness products and its content is accessible through the Peloton Bike, the Peloton Tread, and Peloton Digital. The stock surged 11.5% in a week and has 2.2% exposure in the fund’s basket. Its earnings are expected to grow 78.1% for fiscal year (ending June 2021). Peloton has a Zacks Rank #3.

Match Group Inc. (MTCH - Free Report): It is the world’s foremost provider of dating products and operates a portfolio of more than 45 brands. Its biggest and best-known brands are Tinder, Match.com, PlentyOfFish, Meetic, and OkCupid. The stock has a projected earnings growth rate of 1.2% for this year and has rallied 11.2% in a week. It accounts for 0.32% of the fund’s portfolio and has a Zacks Rank #3.

DocuSign Inc. (DOCU - Free Report): This company offers services to mortgage, non-profit, government, real estate, insurance, technology, and healthcare industries. It has jumped 9.6% in a week and its earnings are expected to increase 86.7% for the fiscal year (ending January 2022). DocuSign has a Zacks Rank #3.

Atlassian Corporation PLC (TEAM - Free Report): It is a global leader and innovator in the enterprise collaboration and workflow software space. This stock makes up for 0.27% share in the fund’s basket and has gained 7.9% in a week. It has an estimated earnings growth of 15.6% for this year. The stock carries a Zacks Rank #2 (Buy).