The ProShares UltraPro Short QQQ ETF (SQQQ) is experiencing upward movement as the Nasdaq-100 Index (NDX) faces pressure from a combination of rising Treasury yields and a decline in tech stocks. The 10-year Treasury yield is nearing the significant 5% mark, which has historically been a headwind for high-growth sectors like technology. This yield increase follows a robust December jobs report that has dampened expectations for near-term interest rate cuts by the Federal Reserve. Additionally, major tech companies, including Nvidia, Meta Platforms, and Alphabet, are seeing declines, further contributing to the downward pressure on the Nasdaq-100.
The broader market sentiment is also being influenced by geopolitical factors and economic data releases. U.S. sanctions on the Russian energy sector have led to a rally in crude oil prices, which in turn has lifted yields and added to the risk-off sentiment in equity markets. Investors are also bracing for key economic data, including the Consumer Price Index and wholesale inflation figures, which could provide further insights into the Federal Reserve's monetary policy trajectory. The anticipation of these reports, coupled with the start of the fourth-quarter earnings season, is adding to market volatility.
The SQQQ ETF rose to $32.85, marking a 3.20% increase from the previous close as of 10:00 AM on January 13, 2025.