Direxion Daily Semiconductors Bear 3x Shares (SOXS) experienced a significant pre-market plunge of 5.08% on Thursday. The leveraged inverse ETF, which aims to deliver three times the inverse daily performance of semiconductor stocks, moved sharply lower ahead of the market open.
The decline appears to be driven by positive developments in the semiconductor industry, particularly news of substantial investment in China's semiconductor sector. A major semiconductor components project was announced as part of a broader initiative in Shanghai's Lingang New Area, signaling potential growth and expansion in the industry.
As SOXS is designed to move inversely to semiconductor stocks, positive news for the semiconductor sector typically results in downward pressure on the bearish ETF. The announcement of new semiconductor manufacturing capacity and investment likely fueled optimism about industry prospects, contributing to the pre-market decline in SOXS.
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