Why Nasdaq-100 Leveraged ETF TQQQ Is Falling

ProShares UltraPro QQQ (NASDAQ: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.

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