The Nasdaq 100 Index faced downward pressure as chipmakers were hit by renewed scrutiny over US-China trade relations. The US government's decision to review the Economic and Trade Agreement with China has introduced uncertainty, particularly impacting the semiconductor sector, which is highly sensitive to international trade dynamics. This comes amid President Donald Trump's potential softening of his tariff stance, while also pushing for economic policies aimed at boosting growth and reducing taxes. In response, investors have turned to safe-haven assets, leading to a rally in Treasury bonds and a decline in yields. The dollar weakened, marking its worst week since November 2023, as lower Treasury yields made US exports more competitive.
The ProShares UltraPro Short QQQ ETF (SQQQ) rose 1.97% to $27.98 at 16:20 on Friday, January 24.