$Invesco QQQ(QQQ)$  Down 1%+ — The Bond Market Is Becoming the Bigger Story

QQQ dropped 1.07% Monday, but the number I’m watching isn’t the Nasdaq decline.

It’s the 10-year Treasury yield.

The yield pushed above 5.2%, reaching its highest level since 2007, while tech and semiconductor stocks came under pressure. 

That creates an interesting setup.

For months, strong AI spending and earnings growth have helped investors look past higher rates. But when yields keep climbing, the valuation math becomes harder for high-growth stocks.

What also caught my attention is that the selling wasn’t uniform. Nvidia gained while several semiconductor names fell sharply, suggesting investors may still be willing to pay for perceived AI leaders even as they reduce exposure elsewhere. 

So I’m watching two things:

10-year yield: Does it stabilise around current levels, or keep pushing higher?

Tech leadership: Can the biggest tech names continue absorbing money while the rest of the sector weakens?

If yields keep rising and tech leadership starts breaking down at the same time, that would be a much different signal than a normal one-day pullback.

For now, I’m watching the bond market as closely as the Nasdaq.

At what yield level would you start becoming seriously cautious on QQQ?