ProShares UltraPro Short QQQ (NASDAQ:SQQQ) shares are trading higher by 5% to $7.78 during Tuesday’s session amid reports Iran has launched a ballistic missile attack against Israel.

This escalation in hostilities comes in response to an Israeli airstrike that resulted in the death of Hezbollah leader Hassan Nasrallah.

What To Know: SQQQ is an inverse exchange-traded fund (ETF) designed to deliver three times the inverse performance of the Nasdaq-100 Index. In simpler terms, when the Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) falls, SQQQ is positioned to rise significantly, making it a popular choice for investors looking to hedge against downturns in technology-heavy stocks.

With escalating geopolitical tensions and the U.S. government heightening its military presence in the region, investors are increasingly wary of the implications for global markets.

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As Israel prepares for ongoing confrontation, concerns are mounting about the implications of a broader military engagement that could draw in U.S. forces. Such developments are typically detrimental to equity markets, particularly high-growth sectors dominated by technology stocks, which are heavily represented in the Nasdaq-100.

In times of geopolitical uncertainty, SQQQ can become an attractive asset for those looking to profit from market volatility.

According to data from Benzinga Pro, SQQQ has a 52-week high of $23.34 and a 52-week low of $6.93.