Why Nasdaq-100 Leveraged ETF TQQQ Is Falling

ProShares UltraPro QQQ TQQQ is trading lower by 4.14% to $58.60 Thursday afternoon. Major indexes are lower despite softer-than-expected Feb. PPI data. Continued tariff concerns may be weighing on market sentiment.

What To Know: February's PPI was flat, well below the 0.3% forecast, but failed to lift stocks.

Instead, markets fixated on President Trump's threat of a 200% tariff on European wine and spirits unless the EU eliminates its 50% duty on U.S. whiskey. The news triggered a broad equity sell-off, with the Nasdaq 100 losing 1.7% and tech stocks leading declines.

TQQQ, which amplifies the Nasdaq 100's movements, suffered disproportionately as growth stocks faltered. Treasury yields dipped, with the 10-year yield down to 4.29%, while gold soared to a record $2,980 per ounce, reflecting heightened risk aversion.

As a leveraged ETF, TQQQ thrives in strong rallies but falls sharply in downturns. With trade fears and economic uncertainty rising, volatility could keep pressuring the fund in the near term.

Read Also: Latest Inflation Data Excludes Tariffs, Trump Policy Changes: 2025 Will Be ‘Much More Volatile Year,’ Economist Says