Why Nasdaq-100 Inverse ETF SQQQ Is Up 23% Since Wednesday

ProShares UltraPro Short QQQ ETF SQQQ shares are trading sharply higher by some 22.95% to $57.91 since Wednesday afternoon. SQQQ is a popular, 3x-leveraged inverse ETF that tracks the Nasdaq-100. 

Market indexes are trading sharply lower for the week as investors assess Wednesday's Fed commentary and 75 bps rate hike. Fed Chair Powell indicated there could be a period of much lower economic growth and that there was no painless way to bring inflation down.

What Happened?

The Federal Reserve raised its target fed funds rate by 0.75% on Wednesday to a new range of between 3% and 3.25%, its third 0.75% rate hike in four months. The Fed said it will continue with its previously announced plan to let Treasury securities and agency debt and agency mortgage-backed securities roll off its balance sheet on a monthly basis.

“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures,” the Fed said in a statement...Read More

See Also: Federal Reserve Issues Third Straight 0.75% Interest Rate Hike: What It Means For The Struggling Stock Market

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: MoversTrading IdeasETFswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!