Chip incentives, Fed divisions and geopolitical news mark a 2.04% QQQ decline

QQQ and SPY opened 0.45% and 0.06% lower. By the end of overnight trading, QQQ was down 2.04% and SPY had fallen 1.06%, leaving QQQ behind by 0.99 percentage point. Bloomberg reported that China was preparing up to $70 billion in chip-sector incentives. Fed speakers differed on labor and inflation risks, while Goolsbee explained his dissent from the latest cut. Trump later named Warsh and Hassett as potential Fed leaders and said rates should be 1% or lower in a year. The Wall Street Journal also reported that U.S. forces seized cargo headed from China to Iran.