The ProShares UltraPro QQQ ETF (TQQQ) is experiencing a surge, driven by a combination of favorable economic data and strong corporate earnings. The latest consumer price index report revealed that core inflation in December rose by only 3.2%, slightly below the anticipated 3.3%. This unexpected slowdown in inflation has alleviated concerns about further interest rate hikes by the Federal Reserve, boosting investor sentiment. Additionally, the earnings season kicked off with major U.S. banks reporting better-than-expected results, further fueling optimism in the market. The Nasdaq 100, which TQQQ tracks, is benefiting from these developments, as growth stocks like Tesla and Nvidia see gains due to the drop in Treasury yields.
The Nasdaq 100 futures rose by 1.8% to 21,298.00, reflecting the positive market sentiment. The decline in the 10-year Treasury yield, which fell by 10 basis points to 4.686%, has particularly favored growth stocks, contributing to the upward momentum in the tech-heavy index. The broader market also reacted positively, with the Dow Jones Industrial Average and the S&P 500 both posting significant gains. The combination of easing inflation concerns and robust earnings reports has created a conducive environment for the Nasdaq 100's rise, which is mirrored in TQQQ's performance.
The ProShares UltraPro QQQ ETF (TQQQ) climbed to $80.16, marking a 5.81% increase as of 10:00 AM on January 15, 2025.