The ProShares UltraPro Short QQQ ETF (SQQQ) is experiencing upward momentum as the Nasdaq 100 faces significant pressure following a stronger-than-expected U.S. jobs report. Released on January 10, 2025, the report revealed that 256,000 jobs were added in December, far exceeding the forecast of 164,000. This unexpected surge in job creation has led to a reassessment of the Federal Reserve's interest rate policy, with market participants now anticipating a delay in rate cuts. The Nasdaq 100, heavily weighted with tech stocks, has been particularly affected, with major players like Nvidia seeing substantial declines.
The broader market sentiment has shifted as investors digest the implications of the robust labor market data. The unemployment rate fell to 4.1%, further complicating the outlook for monetary policy. As a result, U.S. Treasury yields have spiked, and the odds of a rate cut in March have diminished significantly. This environment has created a challenging backdrop for growth stocks, which are sensitive to interest rate changes, thereby contributing to the downward pressure on the Nasdaq 100.
The SQQQ ETF, which inversely tracks the Nasdaq 100, rose to $31.78, marking a 4.71% increase from the previous close.