The Nasdaq 100 entered bear territory amid Russia’s invasion of Ukraine, but has been rallying as of late. Within the past month, the index is up close to 6%, but down about 9% for the year.
Of course, when there’s volatility, there’s also opportunity. When traders want amplified exposure to the market movements in the Nasdaq 100, they can look to the ProShares Ultra QQQ (QLD).
The fund seeks results that correspond to 2x the daily performance of the Nasdaq-100 Index®. It’s an ideal way to play tech’s heavy-hitters if traders want to double up their gains on a bullish sentiment.
Back in the Driver’s Seat
Big tech has been in pole position for the greater part of the last couple of years, particularly when the pandemic reached a peak in 2020. As the world sought to establish social distancing measures, technology was one of the ways to help keep the economy moving.
From videoconferencing to social media, technology pushed tech-focused stocks to higher heights. That was until a fresh round of stimulus measures brought forth rising global inflation as economies started to heal from the effects of the pandemic.
This caused market analysts to wonder whether big tech’s prices were the result of lofty valuations. As such, a tech sell-off ensued to start 2022.
Things turned worse this year as Russia’s invasion of Ukraine helped to push the Nasdaq 100, in particular, into bear market territory. As the world digests the current state of the economy, this can give traders an opportunity to buy the current dip.
“Shares on Wall Street steadied on Friday after a tech-driven rally and U.S. Treasury yields rose as markets evaluated the possibility of bigger U.S. interest rates in store and the impact of Russia’s war in Ukraine,” Reuters reports.
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