Latest news with #DirexionDailySemiconductorsBull3xShares
Yahoo
12-05-2025
- Business
- Yahoo
Traders Dumped Levered Semiconductor Funds Just Before 24% Surge
(Bloomberg) — ETF investors exited bullish bets on semiconductors last week, just before the sector staged one of its sharpest one-day rebounds in months as Wall Street cheers a US-China trade truce. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies LA Mayor Credits Trump on Fire Aid, Stays Wary on Immigration More than $340 million fled the Direxion Daily Semiconductors Bull 3x Shares (ticker SOXL), which offers triple-leveraged exposure to the industry, during the week ended Friday. That outflow — which marks SOXL's third straight week of money rushing out — came just ahead of a 24% surge for the fund on Monday. The VanEck Semiconductor fund (SMH) also saw roughly $485 million in outflows last week, the most since the end of January, data compiled by Bloomberg show. The ill-timed withdrawals come as US and Chinese officials announced plans to reduce tariffs for 90 days to defuse economic tensions between the two countries. Now, traders are unleashing bullish wagers across sectors caught up in the trade fallout, sparking a dramatic turnaround in fast-money positioning. Risk assets gained at the start of the week after US and Chinese representatives said that they would temporarily lower tariffs to de-escalate the trade war, with President Donald Trump adding that he'd likely speak with Chinese leader Xi Jinping later this week. Deutsche Bank strategists said the announcements on tariffs were much better than they — and the market — had been expecting. The S&P 500 rose as much as 3.2% Monday, while the tech-heavy Nasdaq 100 added 4% at one point. The Philadelphia Semiconductor Index spiked 7.6%. SOXL is one of a slew of leveraged ETFs that offer amplified exposure to popular investment themes, with Monday's sharp moves underscoring the risks and rewards inherent in the trading instrument. Among the stocks driving SOXL is Taiwan Semiconductor Manufacturing Co., whose revenue rose 48% last month. Analysts said the firm — among others — rushed to acquire components before tariffs kicked in. 'Even though the monthly sales from Taiwan Semiconductor were good last week, a lot of investors thought it was just front-end loading before the tariffs set in. Yes, they knew the eventual tariffs would not be 145%, but they did not expect to see them fall this much so quickly,' said Matt Maley, chief market strategist at Miller Tabak + Co. US Border Towns Are Being Ravaged by Canada's Furious Boycott The Recession Chatter Is Getting Louder. Watch These Metrics How the Lizard King Built a Reptile Empire Selling $50,000 Geckos Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise ©2025 Bloomberg L.P.
Bloomberg
28-01-2025
- Business
- Bloomberg
Tech's Day of Reckoning Spurs Biggest Dip-Buying Rush Since 2021
A punishing selloff in technology stocks on Monday spelled opportunity for dip-buyers prowling in the $11 trillion ETF arena. As the Invesco QQQ Trust Series 1 (ticker QQQ) sank nearly 3% on Monday, spooked by Chinese startup DeepSeek's AI progress, investors poured $4.3 billion into the tech-heavy fund — its biggest one-day haul since 2021. The same impulse drove a record $1 billion into the GraniteShares 2x Long NVDA Daily ETF (NVDL), and almost $1.3 billion into the Direxion Daily Semiconductors Bull 3x Shares (SOXL), Bloomberg data show, despite double-digit plunges in both funds.
