The ProShares UltraPro QQQ (NASDAQ:TQQQ), which provides triple-leveraged exposure to the Nasdaq-100 Index, fell some 10.81% to $82.09 Wednesday after the Federal Reserve's December meeting.
What To Know: The ETF is sensitive to bullish sentiment in tech stocks, which struggled amid concerns over the Fed's cautious outlook on monetary easing.
While the Fed reduced the federal funds rate by 25 basis points to a range of 4.25%-4.5%, projections for only two additional rate cuts in 2025 dampened investor enthusiasm.
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Higher inflation expectations for 2025, with core PCE inflation now forecast at 2.5%, further weighed on growth stocks.
Tech-heavy indices, which benefit from lower borrowing costs, faced headwinds as the Fed signaled a slower pace of rate reductions than markets had previously anticipated. Wednesday's decline could reflect renewed uncertainty about the growth sector's ability to thrive in a persistently higher-rate environment.
According to data from Benzinga Pro, TQQQ has a 52-week high of $93.79 and a 52-week low of $45.47.
- Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025
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