Investor optimism surrounding the upcoming earnings reports from megacap tech companies has fueled a rebound in the Nasdaq 100 Index. This positive sentiment is driving the index higher, despite earlier concerns about the impact of a new AI model from Chinese startup DeepSeek on tech valuations. As the earnings season unfolds, market participants are keenly observing whether the results will support the high valuations that have characterized the tech sector's recent bull run. Additionally, the Federal Reserve's forthcoming signals on inflation remain a focal point, as they could influence expectations for future interest rate adjustments. The strengthening US dollar, as indicated by the rising Bloomberg Dollar Spot Index, also plays a role in shaping investor sentiment, potentially affecting the global competitiveness of US tech stocks.
The ProShares UltraPro Short QQQ ETF (SQQQ) experienced a decline, closing at $29.04, down 4.47% from its previous close of $30.40, and currently trading at $29.09 as of 16:20 on Tuesday, January 28.