What's Going On With Nasdaq-100 Leveraged ETF TQQQ

ProShares UltraPro QQQ TQQQ shares are trading higher by 1.9% to $41.30 Wednesday morning. The ETF is trading higher following worse-than-expected U.S. inflation data.

Rising inflation can lead to concerns about the Federal Reserve implementing tighter monetary policy, potentially including interest rate hikes. However, the impact of rising interest rates on TQQQ can be mixed.

Higher rates can increase borrowing costs and potentially reduce profit margins for tech companies, but they can also attract income-seeking investors away from bonds and into high-growth equities, like those in the tech sector.

For the unitiated, per ProShares, TQQQ seeks daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Nasdaq-100 QQQ ETF.

Inflation Surges Beyond Expectations In August

The annual CPI inflation rate soared from 3.2% in July to a notable 3.7% in August 2023, surpassing economist expectations of a 3.6% increase.

On a monthly basis, the CPI accelerated sharply, rising by 0.6% in August, a stark contrast to the 0.2% increase seen in July, but in line with expectations. This marked the sharpest monthly CPI increase since June 2022...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.