Investors are showing renewed confidence in the tech sector, as evidenced by the recovery in the Nasdaq 100 Index. The index has reclaimed key moving averages, signaling upward momentum and reducing the likelihood of further declines. The resilience of major tech stocks, often referred to as the "Magnificent Seven," has provided a positive outlook for the sector, maintaining their breakout from the previous quarter. This stability has created an environment conducive to dispersion trades, allowing for index stabilization even amidst individual stock volatility. Hedge funds continue to hold significant positions in AI-related trades, reflecting ongoing optimism in the sector's potential.
The ProShares UltraPro Short QQQ ETF (SQQQ) experienced a notable decline, dropping 4.67% to $28.98 as of 14:40 on Tuesday, January 28.