The ProShares UltraPro QQQ ETF (TQQQ) is experiencing downward pressure due to a combination of macroeconomic factors and sector-specific challenges. The recent U.S. non-farm payroll report, released on January 10, 2025, showed a significant increase of 256,000 jobs in December, surpassing the forecast of 164,000. This unexpected strength in the labor market has led to a reassessment of the Federal Reserve's monetary policy trajectory, with expectations for rate cuts being pushed back to October. The robust job data has dampened hopes for immediate rate cuts, causing a ripple effect across equity markets, particularly impacting technology stocks, which are sensitive to interest rate expectations.
The Nasdaq 100, which TQQQ tracks, has been hit hard, with futures down 0.53% as of the latest reports. The selloff in big tech stocks, including a notable 6.2% drop in Nvidia, has contributed to the broader decline in the index. The market's reaction to the strong payroll data has also led to a rise in U.S. Treasury yields, further pressuring growth-oriented sectors like technology. Additionally, the anticipation of new U.S. restrictions on chip exports has added to the negative sentiment surrounding tech stocks, exacerbating the decline in the Nasdaq 100.
The ProShares UltraPro QQQ ETF (TQQQ) is currently priced at $76.93, reflecting a 4.65% decrease from the previous close.