The Nasdaq Composite has gained 13.7% and the Nasdaq-100 has added 16.6% so far in 2026, but investors are weighing whether the tech-led rally can persist through the second half of the year. AI spending among hyperscalers is projected to reach $765 billion this year, according to Goldman Sachs, while the Nasdaq-100's forward price-to-earnings ratio stood at 32.61 times as of July 31, nearly flat from a year ago. Second-quarter earnings for the Magnificent Seven group are expected to jump 85.5% on 27.5% higher revenues, though rising Treasury yields—with the 10-year at 4.75% and the 30-year at 5.27%—and concerns over AI monetization and cash burn at firms like Alphabet and Amazon pose headwinds. A range of Nasdaq-focused ETFs, including Invesco QQQ, Fidelity Nasdaq Composite Index ETF ONEQ, and the newly launched iShares Nasdaq 100 ETF IQQ with a 0.10% fee, offer varied exposure to the index.
