The Direxion Daily MU Bull 2X Shares (MUU) surged 7.99% during pre-market trading on Tuesday. The leveraged exchange-traded fund, which seeks to deliver twice the daily performance of Micron Technology Inc. (MU), experienced significant upward momentum ahead of the market open.
This sharp increase appears directly linked to reports that Micron Technology, the underlying stock, is set to announce a major investment to build a new memory chip production line in Singapore. The expansion aims to address the severe global shortage of memory chips and is focused on NAND flash memory capacity.
Such a capital expenditure announcement is typically viewed positively by investors, as it signals confidence in future demand and growth prospects for the company's products. The anticipation of this news drove buying interest in Micron shares, which was amplified in the price of the 2X bull ETF.
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