The Aussie bourse is having a Monday to forget, with the S&P/ASX 200 Index (ASX: XJO) tumbling 2.2% at the time of writing. But the week has kicked off in a worse fashion for the Betashares Nasdaq 100 ETF (ASX: NDQ).
The exchange-traded fund (ETF) has plummeted 3.67% at the time of writing to trade at $28.07. That marks its lowest point of the month so far.
So, what could be driving the ETF's tumble?
To explain that, one must first explain what it is. ETFs represent a collection of stocks and the like, which can be traded just like listed shares.
And the Betashares Nasdaq 100 ETF provides exposure to the stocks that make up the NASDAQ-100 Index (NASDAQ: NDX).
So, why is the ASX favourite suffering more than the ASX 200 today? Keep reading to find out.
Why is the Betashares Nasdaq 100 ETF (NDQ) struggling?
The Betashares Nasdaq 100 ETF is most likely falling on – perhaps unsurprisingly – suffering endured by the NASDAQ 100 Index.
The index, made up of many of Wall Street's most renowned companies, tumbled 4.1% on Friday amid seemingly bad news about interest rates.
US Federal Reserve chair Jerome Powell suggested rates would remain elevated for longer in a continued bid to battle inflation late last week, Reuters reports. That's despite the likelihood that such rate hikes would weigh on the nation's economy and result in job losses.
Many of the NASDAQ-100's largest constituents were among its biggest weights on Friday.
Stock in NVIDIA Corporation (NASDAQ: NVDA) – which boasts a US$406.5 billion market capitalisation – tumbled 9% on Friday.
Meanwhile, the share price of tech giants Apple Inc (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT) – each with market caps of more than two trillion – both fell around 4%.
Sadly, it's just the latest pain facing those invested in the Betashares Nasdaq 100 ETF. Its share price has plunged 23% since the start of 2022 and 17% since this time last year.
