The ProShares UltraPro QQQ ETF (TQQQ) is experiencing downward pressure as semiconductor stocks face challenges, contributing to a broader decline in the technology sector. Korean memory chipmaker SK Hynix reported record quarterly results that failed to meet investor expectations, leading to a drop in semiconductor stocks. Additionally, potential U.S. export controls have added to the sector's woes, with notable declines in companies like Nvidia and Micron Technology. This sector-specific weakness is impacting the Nasdaq 100, which TQQQ tracks, as it heavily relies on tech stocks.
Despite the overall bullish sentiment in the Nasdaq 100 due to advancements in artificial intelligence and strong corporate earnings, the index is showing signs of being overbought. Technical indicators suggest a potential dip, as the index has been trading above key resistance levels. The market is also closely watching the weekly U.S. jobless claims data and President Trump's speech at the World Economic Forum, which could further influence market movements.
The TQQQ ETF is currently priced at $86.63, reflecting a 1.34% decrease from the previous close.