The QQQ stock price forecast reflects moderate consolidation before potential rally. Economic indicators like CPI cooling to 3.2% y/y strengthen risk appetite, with market breadth favoring tech over industrials. Short-term volatility remains tied to Fed commentary. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Over the course of the second quarter, the Federal Open Market Committee (FOMC) met twice, in May and June. 7 During both meetings the Federal Reserve (Fed) elected to keep its target rate steady at 4.25% - 4.50%, the same range that it has remained since December 2024. Throughout the quarter, negative comments from President Trump about the Federal Reserve and Chairman Powell intensified, as he continued to call for a rate cut. Following news that the June Fed meeting did not bring a rate cut, Trump argued that the target rate should be 2 full percentage points lower than its current range. In the press conference, Chairman Powell emphasized that he believes the central bank is “well positioned to wait” when it comes to any changes in monetary policy. The Fed’s statement following the meeting had one major change as it says, “uncertainty about the economic outlook has “diminished but remains elevated,” from “uncertainty about the economic outlook has increased further.” Language around risks to both sides of the Fed’s dual mandate was also softened as it mentioned that the Committee is attentive to risks but removes language around higher risks of higher inflation and higher unemployment having risen. The June meeting did bring the latest release of the Fed’s Summary of Economic Projections 8 and there were revisions to expectations for Gross Domestic Product (GDP) and prices that reflect uncertainty from tariff impacts. 9 The 2025 and 2026 GDP projections were lowered to 1.4% and 1.6%, respectively (down from projections of 1.6% and 1.8% at the March meeting) while the 2027 projection remained steady at 1.8%. The Committee expects the unemployment rate to be higher than its previous forecast in March with the 2025, 2026 and 2027 unemployment rate at 4.5%, 4.5% and 4.4%, respectively, up from the March projections of 4.4%, 4.3% and 4.3%, respectively. The lower economic outlook likely stems from the expectation for upward pressure on prices as projections for Personal Consumption Expenditure (PCE) inflation was raised for 2025 (to 3.0% from 2.7% in March), 2026 (to 2.4% from 2.2% in March) and in 2027 (to 2.1% from 2.0% in March). 10 Expectations for Core PCE inflation, which excludes the more volatile food and energy components, were similarly raised for 2025 (to 3.1% from 2.8% in March), 2026 (to 2.4% from 2.2% in March) and 2027 (to 2.1% from 2.0% in March). Despite the lingering concerns around the upward pressure that tariffs can cause on prices, and the related downward impact on economic activity, the Fed’s dot plot shows that FOMC participants still expect two rate cuts this year. Two cuts would bring the target rate down to 3.75% - 4.00%. Institutional strategies highlight QQQ stock price forecast as part of rotation into quality growth. Bond yields stabilizing below 4.2% offer tailwinds for valuation recovery in the most sensitive tech multiples.