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Invesco's SPHQ quality ETF dropped Nvidia, Meta, and Netflix due to high accruals, a non-cash earnings metric. The move signals growing scrutiny over the quality of Big Tech's rapid, investment-fueled earnings growth, even as competing funds maintain their holdings.
Global equity markets, led by the S&P 500, are approaching record highs, buoyed by strong investor optimism in Artificial Intelligence and widespread expectations of another Federal Reserve rate cut. However, this bullish sentiment is contrasted by unusual activity in the bond market, creating a complex and potentially volatile environment.