ProShares UltraPro QQQ (TQQQ) is having a moment. Shares were up 6.8% to $50.72 Monday morning as traders rushed back into leveraged bets on tech stocks, encouraged by fresh signals that the Federal Reserve might ease up on interest rates after all.

The Leverage Game

TQQQ is a 3x-leveraged exchange-traded fund designed to deliver three times the daily performance of Invesco QQQ Trust (QQQ), which tracks the tech-heavy Nasdaq-100 index. When QQQ moves, TQQQ moves harder—that's the entire point.

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 exactly as designed. It's a simple amplification mechanism that becomes very popular when traders believe tech's next move is up.

Goldman's Rate Cut Call

The catalyst for Monday's enthusiasm came from Goldman Sachs, which reiterated its call for a 25-basis-point Federal Reserve rate cut at the December FOMC meeting. The bank urged clients to stay overweight equities and "buy the dip," pointing to cooling labor markets and inflation hovering near 2% as reasons the Fed should permit easier policy into 2026.

Lower expected policy rates matter for tech stocks because they boost the present value of long-duration growth companies that dominate the Nasdaq-100. When future earnings look more valuable today, demand for leveraged exposure vehicles such as TQQQ tends to follow.

History Suggests Strong Rebounds

There's also a historical pattern working in TQQQ's favor. A recent 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.

That kind of rebound pattern, combined with rising odds of Fed easing, is helping power TQQQ higher as speculative traders position for a potential year-end tech rally. It's not a guarantee, but it's a pattern that tends to get attention when sentiment shifts.

Momentum Is Building

According to stock rankings data, TQQQ currently holds a strong momentum score of 83.54, with strength showing up primarily in its long-term trend. That's the kind of number that catches the eye of momentum traders looking for confirmation that the move has legs.

Whether this rally continues depends largely on whether the Fed delivers what Goldman expects and whether tech earnings can support the valuations. But for now, leveraged tech bulls are betting the answer to both questions is yes.