Shares of ProShares UltraPro QQQ ( TQQQ ) are trading higher Monday morning as traders pile back into leveraged bets on the Nasdaq-100 as fresh macro and historical signals favor growth stocks. Here’s what investors need to know.

TQQQ is showing exceptional strength. Check the full analysis here.

What To Know: TQQQ is a 3x-leveraged exchange-traded fund designed to deliver three times the daily performance of the Invesco QQQ Trust, Series 1 ( QQQ ) , which tracks the tech-heavy Nasdaq-100 index.

With QQQ last up roughly 2% near $602 after opening around $595 and touching an intraday high just above $602, TQQQ's gains are being magnified.

Sentiment improved after Goldman Sachs reiterated its call for a 25-basis-point Federal Reserve rate cut at the December FOMC meeting and urged clients to stay overweight equities and "buy the dip," saying cooling labor markets and inflation near 2% should permit easier policy into 2026.

Lower expected policy rates boost the present value of long-duration growth stocks that dominate the Nasdaq-100, increasing demand for leveraged exposure vehicles such as TQQQ.

A Benzinga study showed that when the Nasdaq-100 drops more than 5% in a month, subsequent 12-month returns have averaged roughly 27%, with positive performance in nearly 86% of cases.

This historical pattern of strong rebounds, combined with rising odds of Fed easing, is helping power TQQQ higher as speculative traders position for a potential year-end tech rally.

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, TQQQ currently holds a strong momentum score of 83.54, with strength showing up primarily in its long-term trend.

TQQQ Price Action: ProShares UltraPro QQQ ( TQQQ ) shares were up 6.8% at $50.72 at the time of publication on Monday, according to Benzinga Pro data.

Read Also: Alibaba Q2 Preview: Qwen’s 10 Million Milestone Highlights ‘Historic Opportunities’ In AI, Cloud

Image: Shutterstock.com