ProShares UltraPro QQQ (TQQQ), a leveraged ETF tracking the Nasdaq-100 Index, soared 5.02% in pre-market trading on Tuesday, reflecting a broader market recovery following Monday's sharp sell-off. The significant uptick in TQQQ, which aims to deliver triple the daily performance of the Nasdaq-100, indicates strong bullish sentiment for technology and growth stocks.
The rebound comes after a tumultuous Monday that saw major indexes slide more than 2%, with the Dow dropping over 970 points. Investors appear to be regaining confidence despite ongoing uncertainties surrounding Federal Reserve policy and recent criticisms from President Donald Trump directed at Fed Chair Jerome Powell. Trump's comments on Truth Social, calling for interest rate cuts and hinting at Powell's potential "termination," had initially rattled markets.
As traders look ahead to key economic indicators, including the Richmond Fed's manufacturing survey and speeches from several Fed officials, the pre-market surge in TQQQ suggests that investors are cautiously optimistic. However, market participants remain vigilant, given the recent volatility triggered by geopolitical tensions and economic policy uncertainties. The performance of TQQQ in the coming sessions will likely depend on how these factors unfold and impact the broader tech-heavy Nasdaq index.
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