Why Nasdaq-100 Inverse ETF SQQQ Is Rising

ProShares UltraPro Short QQQ ETF SQQQ shares are trading higher by 1.1% to $20.39 during Thursday's session. The ETF is rising amid overall market weakness recent strength in Treasury yields.

SQQQ is primarily designed for short-term trading and market timing strategies. Some investors may use it as a tool to take advantage of anticipated market downturns or as a tactical way to implement short-term trading strategies based on their outlook for the NASDAQ-100 Index.

Why It Matters

SQQQ's strategy is particularly relevant when applied to the technology sector. The NASDAQ-100 Index is heavily weighted toward technology and growth-oriented stocks. When interest rates rise, it can lead to higher discount rates applied to future cash flows, potentially reducing the present value of future earnings for tech companies.

This can lead to a decline in the stock prices of tech-related firms, which can benefit SQQQ.

See Also: How The 'January Effect' Could Spark Tech Stock Renaissance In October

According to data from Benzinga Pro, SQQQ has a 52-week high of $69.55 and a 52-week low of $16.38.