The technology sector experienced a notable rebound as investors responded positively to a favorable inflation report, which bolstered expectations for continued interest rate cuts by the Federal Reserve. The consumer price index's consistent rise of 0.3% for the fourth consecutive month has reinforced confidence among swaps traders in a forthcoming quarter-point rate cut. This prospect of lower borrowing costs is particularly advantageous for interest rate-sensitive sectors like technology, encouraging further investment and growth. The Nasdaq 100 Index's climb reflects this optimism, driven by the anticipated monetary easing and its potential to sustain momentum in tech stocks.
The ProShares UltraPro Short QQQ ETF (SQQQ) saw a decline, dropping 4.96% to $29.12 as of 16:20 on Wednesday, December 11.