Why Nasdaq-100 Inverse ETF SQQQ Is Volatile This Week
Portfolio Pulse from Henry Khederian
ProShares UltraPro Short QQQ ETF (SQQQ) shares are trading lower after Fitch downgraded the long-term credit rating of the US. This has affected market sentiment and pressured growth sectors. SQQQ rises when the Nasdaq-100 (QQQ) index falls, and a credit rating downgrade can trigger a decline in the broader market indices. As investors move away from riskier assets, they may seek protection in inverse ETFs like SQQQ.
August 04, 2023 | 3:49 pm
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NEGATIVE IMPACT
The Nasdaq-100 index, represented by QQQ, may decline due to the US credit rating downgrade by Fitch. This could lead to an increase in the price of inverse ETFs like SQQQ.
The Nasdaq-100 index, represented by QQQ, may decline due to the US credit rating downgrade by Fitch. This could lead to an increase in the price of inverse ETFs like SQQQ as investors seek protection from market volatility.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SQQQ shares are trading lower due to the US credit rating downgrade by Fitch. This ETF rises when the Nasdaq-100 index falls, indicating potential future gains if market indices continue to decline.
SQQQ is an inverse ETF that rises when the Nasdaq-100 index falls. The US credit rating downgrade by Fitch has led to a decline in market indices, which has in turn led to a decline in SQQQ shares. However, if market indices continue to decline, SQQQ could see gains as investors seek protection in inverse ETFs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100