Direxion Daily MU Bull 2X Shares (MUU) experienced a pre-market plunge of 9.60%, reflecting amplified losses in the leveraged exchange-traded fund that tracks Micron Technology.
The sharp decline was driven by a broad semiconductor sector selloff triggered by Broadcom's quarterly earnings report. Broadcom delivered strong results but declined to raise its fiscal year 2027 AI revenue guidance beyond the previously stated target, disappointing investors and causing its shares to fall sharply during the regular session. This sparked a retreat across AI-related chip stocks, with selling pressure continuing into pre-market trading.
As a 2x leveraged product designed to deliver twice the daily performance of Micron Technology, MUU amplified the downside movement as its underlying asset declined significantly. Micron Technology, which had experienced a historic rally, faced substantial selling pressure amid the sector-wide weakness, with profit-taking contributing to the correction.
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