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The Nasdaq 100 Index continued its strong rally last week and hit its all-time high of $25,358. It has jumped by over 53% from its lowest level this year, making it one of the best-performing indices in the United States.

Its performance also translated to the strong gains to its top ETFs like the Invesco QQQ (QQQ), JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), and Global X NASDAQ 100 Covered Call ETF (QYLD). This article looks at some of the top catalysts for these assets this week.

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Nasdaq 100 Index vs QYLD vs JEPQ ETFfs

Federal Reserve interest rate decision

One of the top catalysts for the Nasdaq 100 Index and its ETFs, like QQQ, QYLD, and JEPQ is the upcoming Federal Reserve interest rate decision scheduled for Wednesday this week.

Economists and traders on platforms like Polymarket and Kalshi are betting that the Fed will cut interest rates by 0.25% in this meeting. 

Odds of these cuts jumped after the US released the September inflation report on Friday last week. This report showed that the headline Consumer Price Index (CPI) rose to 3.0% in September, lower than the expected 3.1%. Core inflation, which excludes the volatile food and energy prices, dropped to 3.0% from the previous 3.1%.

These numbers, together with the ADP jobs report, support the case for interest rate cuts in this meeting, which will move from 4.25% to between 3.75% and 4%. Also, the bank will likely tweak its ongoing quantitative tightening policies.

While the interest rate decision will be important, the main catalyst for the Nasdaq 100 Index and other assets is the guidance for the final meeting of the year. ING analysts believe that the bank will cut interest rates again, saying:

“At the September FOMC meeting, the Fed updated its own forecasts with the median expectation of officials suggesting that these two cuts plus one more in 2026 would be enough to support growth while containing inflation. The market is skeptical, believing that a rapidly cooling jobs market will require more aggressive action.”

Big Tech earnings to impact the Nasdaq 100 Index 

The other main catalyst for the Nasdaq 100 Index and its ETFs like QQQ, JEPQ, and QYLD is the upcoming big tech earnings, which will provide more color on growth and the artificial intelligence sector. This will be important as some analysts believe that we are in an AI bubble that may pop in the next few months.

One reason for the AI bubble is the circular spending by companies like OpenAI, Nvidia, and Microsoft. For example, Nvidia has announced a $100 billion investment in OpenAI, with most of the cash going towards purchasing of its GPUs. Similarly, Nvidia is a big investor in CoreWeave, which is also spending a lot of on Nvidia GPUs.

The top big tech companies to watch this week will be Meta Platforms, Microsoft, Apple, and Google.

US and China trade talks

The other major catalyst for the Nasdaq 100 Index and other ETFs like QQQ, JEPQ, and QYLD is the upcoming trade talks between the US and China.

These talks, which will happen at the APEC Summit in South Korea, will be the first time that Donald Trump and Xi Jinping talk during his presidency.

A deal between the two countries will be a positive one for the stock market as it will remove one of the biggest risks in the market today. Also, it will help to contain inflation as Donald Trump has pledged to hike tariffs if China blocks rare earth materials exports to the country.

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