Movement Alert|Direxion Daily Technology Bull 3X Shares Rises 5.14% in Regular Trading, Tech Giants Earnings Beat and AI Capex Surge Fuel Rebound

Market Focus08-04

On August 3, Direxion Daily Technology Bull 3X Shares rose 5.14% in regular trading, trading at $182.5/share, with turnover of $70.97 million.

The leveraged technology ETF advanced as global tech stocks extended their recovery rally. On the news front, major U.S. cloud giants delivered strong Q2 earnings: Microsoft Azure cloud revenue grew 43% year-over-year surpassing expectations, Amazon AWS revenue hit $42.2 billion marking an 18-quarter high, and Amazon raised its full-year capital expenditure guidance to $220 billion. According to market data, the four major U.S. cloud companies posted a combined 79% year-over-year increase in Q2 capital spending, with aggregate capex guidance approaching $750 billion, confirming robust AI infrastructure demand visibility extending through 2028.

The rally was further supported by the resolution of a major forced liquidation event, in which approximately $16 billion in AI-related positions from a leveraged fund were absorbed at steep discounts, effectively clearing the largest overhang on the sector and triggering broad-based short covering across technology names.

The fund invests at least 80% of its net assets in financial instruments providing 3X daily leveraged exposure to a domestic technology sector index, including swap agreements, index securities, and ETFs. It is non-diversified.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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