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Tech Sector Woes Boost SQQQ 1.33% as Alphabet and Apple Struggle

The ProShares UltraPro Short QQQ ETF (SQQQ) is experiencing upward momentum as the Nasdaq 100 faces significant pressure from a series of negative developments in the tech sector. Alphabet's stock has plunged 9% following disappointing cloud revenue and a massive $75 billion AI investment plan, which has raised investor concerns about profitability. Additionally, Apple is under scrutiny as China's antitrust authorities consider a probe into its App Store policies, further exacerbating the tech giant's market challenges. These factors, combined with AMD's weaker-than-expected data center revenue, have contributed to a broader sell-off in tech stocks, driving the Nasdaq 100 lower.

The ongoing U.S.-China trade tensions are adding to the market's volatility, with recent tariffs imposed by both nations impacting investor sentiment. The Nasdaq futures have dropped by 1.03%, reflecting the market's apprehension about the potential for further regulatory actions and economic repercussions. As a result, haven assets like gold and Treasuries are seeing increased demand, with gold reaching a record high and U.S. 10-year yields falling by approximately 4 basis points to 4.47%.

The SQQQ ETF is currently priced at $29.03, marking a 1.33% increase from its previous close.