ProShares UltraPro QQQ (NASDAQ:TQQQ) shares are trading lower by 5.1% to $56.50 Tuesday morning.
The leveraged ETF is falling after inflation for January 2024 dipped slightly but missed economists' forecasts.
The annual Consumer Price Index (CPI) inflation rate fell to 3.1%, down from 3.4%, but higher than the expected 2.9%. Monthly CPI increased by 0.3%, surpassing the expected 0.2%. Core CPI, excluding food and energy prices, held steady at 3.8%, missing the anticipated drop to 3.7%...Read More
Why This Matters
When economic data misses forecasts, it can lead to uncertainty and volatility in the market. Investors often rely on economic forecasts to make investment decisions, and when the actual data deviates from these forecasts, it can trigger reactions in the market.
The fact that the core CPI inflation rate, which excludes volatile food and energy prices, held steady may suggest persistent inflationary pressures. This could lead to concerns about potential future interest rate hikes, or a lack of rate cutes, by the Federal Reserve to combat inflation, which could impact borrowing costs for companies and dampen economic growth expectations.
According to data from Benzinga Pro, TQQQ has a 52-week high of $61.14 and a 52-week low of $20.13.