Stock Track | Direxion Daily Semiconductors Bull 3x Shares (SOXL) Soars 7.02% on Reports of Less Severe China Chip Restrictions

Stock Track11-29

The Direxion Daily Semiconductors Bull 3x Shares (SOXL) rallied 7.02% on Friday, outperforming the broader market. The surge came after reports that the Biden administration's planned restrictions on semiconductor sales to China may not be as severe as previously expected.

According to Bloomberg News, the upcoming curbs on exports of chip manufacturing equipment to China could be less harsh than initially feared. This prospect boosted shares of major semiconductor companies such as Applied Materials (AMAT), ASML (ASML), Nvidia (NVDA), and Arm Holdings (ARM), which saw gains ranging from nearly 3% to around 4%.

The rally in SOXL, an exchange-traded fund that aims to deliver triple the daily returns of the semiconductor sector, reflects investor optimism that a more moderate stance on China chip restrictions could benefit U.S. chip equipment makers by allowing them to continue selling products to the Chinese market.

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