Stock Track | SOXS Plummets 5.03% Intraday After Pre-market Surge as Market Reassesses Semiconductor Risks

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Direxion Daily Semiconductors Bear 3x Shares (SOXS) plummeted 5.03% during intraday trading on Monday, marking a significant reversal from its earlier pre-market surge.

The leveraged inverse ETF, which aims to deliver three times the inverse daily performance of the ICE Semiconductor Index, had soared 11.27% in pre-market trading as semiconductor stocks broadly declined. The initial sell-off in the sector was driven by rising fears about potential disruption to the chip supply chain from conflict in the Middle East, particularly concerns about energy-intensive semiconductor fabrication facilities facing higher electricity and fuel prices.

However, the intraday plummet suggests the market may be reassessing the immediate impact of these geopolitical tensions. While Asian chipmakers like SK Hynix and Samsung Electronics saw significant declines in local trading, and broader AI investment plans in the Gulf region face uncertainty, traders appear to be moderating their bearish stance on semiconductors as the trading session progresses.

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