Why Nasdaq-100 Inverse ETF SQQQ Is Moving

ProShares UltraPro Short QQQ ETF (NASDAQ:SQQQ) shares are trading marginally higher by 0.8% to $18.72 Wednesday morning. The ETF is trading near session highs ahead of Wednesday's Fed decision.

SQQQ is primarily designed for short-term trading and market timing strategies. Some investors may use it as a tool to take advantage of anticipated market downturns or as a tactical way to implement short-term trading strategies based on their outlook for the Nasdaq-100 Index.

Why It Matters

Investors may expect the Fed to signal that it is willing to keep raising interest rates until inflation is under control. Even if the Fed does not raise interest rates more aggressively than expected, it may signal that it is willing to keep raising interest rates until inflation is under control.

This could also lead to a sell-off in stocks, as investors may become concerned about the potential for a recession. This would also likely cause SQQQ to rise.

What To Expect Today

As the Federal Open Market Committee (FOMC) prepares to reveal its rate decision at 2 p.m. ET on Wednesday, market watchers and economists are speculating about the Federal Reserve’s next actions.

The consensus view is that the Fed is likely to maintain its current interest rates in the range of 5.25%-5.5%...Read More

According to data from Benzinga Pro, SQQQ has a 52-week high of $69.55 and a 52-week low of $16.38.