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Why is SQQQ Up Today After Jobs Report

The ProShares UltraPro Short QQQ ETF (SQQQ) closed on January 10th at $31.83, up 4.88%, as the Nasdaq 100 faced significant pressure following a stronger-than-expected U.S. jobs report. The report revealed 256,000 jobs were added in December, surpassing the forecast of 164,000, leading to a reassessment of the Federal Reserve's interest rate policy. This unexpected surge in job creation has diminished expectations for imminent rate cuts, pushing the first anticipated cut to October. The Nasdaq 100, heavily weighted with tech stocks, saw declines, with Nvidia dropping 3.00% amid concerns over potential new U.S. restrictions on chip exports. The broader market sentiment shifted as investors digested the robust labor market data, with the unemployment rate falling to 4.1%. U.S. Treasury yields spiked, and the odds of a rate cut in March diminished significantly, creating a challenging backdrop for growth stocks sensitive to interest rate changes.