Why the Nasdaq-100 Leveraged ETF TQQQ Is Falling – ProShares UltraPro QQQ (NASDAQ:TQQQ)

The ProShares UltraPro QQQ TQQQwhich provides triple leveraged exposure to the Nasdaq 100 indexfell about 10.81% to $82.09 on Wednesday Federal Reserve Meeting in December.

What you should know: The ETF is sensitive to bullish sentiment in technology stocks, which have struggled amid concerns about the Fed’s cautious outlook on monetary easing.

While the Fed cut interest rates by 25 basis points to a range of 4.25% to 4.5%, forecasts for just two more rate cuts in 2025 dampened investor enthusiasm.

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Higher inflation expectations for 2025, with core PCE inflation now forecast at 2.5%, further weighed on growth stocks.

Technology-heavy indexes that benefit from lower borrowing costs faced headwinds as the Fed signaled a slower pace of rate cuts than markets had previously expected. Wednesday’s decline could reflect renewed uncertainty about the growth sector’s ability to thrive in an environment of persistently higher interest rates.

According to data from Benzinga Pro, TQQQ has a 52-week high of $93.79 and a 52-week low of $45.47.

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