Why Nasdaq-100 Leveraged ETF TQQQ Is Down 6%

ProShares UltraPro QQQ TQQQ shares are trading lower by roughly 6% to $42.30 Wednesday morning after Fitch downgraded the long-term credit rating of the United States.

What's Going On?

In a move that sent shockwaves through global markets, Fitch Ratings downgraded the United States’ sovereign credit grade from AAA to AA+. This downgrade, echoing a move by S&P Global more than a decade ago, comes as a result of several concerning factors affecting the nation’s fiscal management.

S&P Global rates the U.S. sovereign credit rating at AA+ with a stable outlook, while Moody’s rates it at Aaa with a stable outlook, both unchanged since 2013...Read More

According to data from Benzinga Pro, TQQQ has a 52-week high of $47.14 and a 52-week low of $16.10.