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Benzinga
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Another Fed Rate Cut Bolsters Argument For ProShares Nasdaq-100 High Income ETF

1. Federal Reserve cuts benchmark interest rate by 25 basis points. 2. Fed halts runoff of security holdings in December, ending quantitative tightening. 3. Economic growth remains moderate amid persistent inflation pressures. 4. ProShares launches IQQQ ETF, targeting strong income under new monetary policy. 5. IQQQ ETF shows positive momentum with over 26% gains in the last six months.

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FAQ

Why Bullish?

The Fed's interest rate cut and shift to dovish policies can boost market liquidity, typically leading to higher equity prices, similar to previous rate cuts in 2020 and 2021 that supported S&P 500 growth.

How important is it?

The Fed's policy changes are crucial for market direction and can significantly influence large-cap stocks within the S&P 500.

Why Short Term?

Immediate positive market response expected as investors adapt to lower rates, similar to past Fed easing impacts evident over months.

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