ProShares UltraPro QQQ (TQQQ), a leveraged ETF that aims to deliver three times the daily performance of the Nasdaq-100 Index, plummeted 5.02% in Friday's trading session. The sharp decline came as U.S. stocks, particularly tech-heavy indices, faced significant headwinds from hotter-than-expected inflation data and ongoing tariff uncertainties.

The core personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 2.8% year-over-year in February, exceeding economists' expectations of 2.7%. This data raised concerns about persistent inflation and potentially delayed interest rate cuts, weighing heavily on growth stocks and amplifying TQQQ's losses due to its leveraged nature.

Adding to the market turmoil, investors continued to grapple with the implications of President Donald Trump's recent announcement of a 25% tariff on imported cars. This development has intensified worries about global trade tensions and their potential impact on economic growth, further pressuring tech stocks and, by extension, TQQQ.

As a triple-leveraged ETF, TQQQ's 5.02% drop reflects and amplifies the broader market's negative sentiment. With the Nasdaq Composite reported to be down 1% and the S&P 500 slipping 0.4%, TQQQ's more pronounced decline aligns with its designed sensitivity to market movements. Investors in leveraged ETFs like TQQQ should remain cautious, as these instruments can experience significant volatility, especially during periods of market uncertainty.