Anticipation of a Federal Reserve rate cut this week has sparked optimism in the tech sector, driving the Nasdaq 100 to new heights. The expected 25 basis point reduction in overnight rates is set to lower borrowing costs, fostering investment in growth-oriented sectors. This has buoyed tech stocks, with companies like Broadcom Inc. and Tesla Inc. seeing notable gains. The potential slowdown in the Fed's quantitative easing cycle next year is also contributing to the positive sentiment, prompting traders to adjust their strategies. The Nasdaq 100 Index reached a record high, reflecting the robust performance of tech stocks amid these market dynamics.
The ProShares UltraPro Short QQQ ETF (SQQQ) experienced a decline, closing at $27.70, down 4.25% from its previous close of $28.93, as of 16:20 on Monday, December 16.