Since September 1st, 2024, the ProShares UltraPro Short QQQ (SQQQ) has experienced a significant surge in value, fueled by worsening economic conditions in the United States. SQQQ, a popular ETF that inversely tracks the Nasdaq-100 with triple leverage, has become a favored instrument for investors betting against the tech-heavy index. As inflation continues to run hot, interest rates remain elevated, and consumer confidence plummets, tech stocks have borne the brunt of the economic downturn. Big names like Apple, Microsoft, and Tesla have seen sharp declines, pulling the Nasdaq lower and boosting SQQQ’s performance.
The struggling U.S. economy has been marked by disappointing economic data, including shrinking GDP forecasts and continued pressure from the Federal Reserve’s aggressive monetary tightening. Uncertainty around potential government shutdowns and rising energy prices has further spooked markets. As a result, risk-averse investors have flocked to SQQQ, seeing it as an effective hedge against the volatile tech sector and broader market instability. Since the beginning of September, SQQQ has soared, delivering double-digit returns in a matter of days.
