ProShares UltraPro Short QQQ (NASDAQ:SQQQ) shares are trading higher by 8.2% to $38.36 during Friday’s session. Major indexes are lower following a greater-than-expected rise in the PCE price index in February while personal spending missed estimates. Additionally, auto stocks continued lower following recent tariff announcements.
What To Know: Shares of the SQQQ also surged following the release of the University of Michigan's final consumer sentiment report, which painted a bleak picture of inflation expectations and economic confidence.
SQQQ is a leveraged inverse ETF designed to deliver three times the inverse daily return of the Nasdaq-100 Index (NDX), meaning it thrives when tech-heavy stocks decline.
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A sharp rise in five-year inflation expectations to 4.1%--the highest since 1993--alongside plunging consumer sentiment raised fears that the Federal Reserve may keep interest rates higher for longer.
Higher inflation erodes corporate profitability, particularly for growth stocks in the Nasdaq-100, which are sensitive to rising borrowing costs.
As concerns over a weakening labor market and deteriorating consumer sentiment mounted, investors fled riskier assets Friday, triggering a selloff in technology stocks.
Read Also: Fed’s Favorite Inflation Gauge Rises More Than Expected In February, Casting Doubt On Near-Term Rate Cuts
According to data from Benzinga Pro, SQQQ has a 52-week high of $64.95 and a 52-week low of $26.21.
