ProShares UltraPro Short QQQ (SQQQ), an inverse leveraged ETF that moves opposite to the Nasdaq-100 Index, plummeted 5.05% in intraday trading on Wednesday. The sharp decline came as the Nasdaq Composite Index surged following the Federal Reserve's latest policy decision and economic projections.

The Federal Reserve announced that it would hold its benchmark interest rate steady for the second consecutive meeting, maintaining the federal funds rate in a range of 4.25%-4.5%. This decision, coupled with the Fed's updated economic forecasts, triggered a rally in tech stocks and the broader market. The Nasdaq index jumped 1.15% immediately after the announcement, with the S&P 500 rising 0.82%.

SQQQ's significant drop reflects the inverse relationship between the ETF and the Nasdaq index. As the Nasdaq rallied, SQQQ, which is designed to provide triple the inverse daily performance of the Nasdaq-100 Index, experienced a sharp decline. This movement underscores the high-risk nature of leveraged ETFs, particularly in volatile market conditions driven by significant economic events such as Fed policy decisions.