The Nasdaq 100 Index faced downward pressure as chipmakers were impacted 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 affecting the semiconductor sector, which is highly sensitive to international trade dynamics. This development coincides with President Donald Trump's potential softening of his tariff stance, while also advocating for economic policies aimed at boosting growth and reducing taxes. In response, investors have shown a preference for safe-haven assets, leading to a rally in Treasury bonds and a decline in yields. The dollar has weakened, marking its worst week since November 2023, as lower Treasury yields have made US exports more competitive.
The ProShares UltraPro QQQ ETF (TQQQ) experienced a decline, dropping 1.94% to $86.63 at 16:20 on Friday, January 24.