Direxion Daily MU Bull 2X Shares (MUU), a leveraged exchange-traded fund designed to deliver twice the daily performance of Micron Technology, experienced a significant 24-hour plunge of 5.14% during Monday's trading session.

The sharp decline in MUU reflects broader pressure on the semiconductor sector, particularly memory chip stocks. The selling sentiment was triggered by a steep drop in shares of SK Hynix, which plunged over 15% in the South Korean market. As both SK Hynix and Micron Technology are major suppliers of High Bandwidth Memory (HBM), the negative investor sentiment quickly spread across the memory chip segment.

Furthermore, escalating geopolitical tensions in the Middle East intensified overall market risk aversion over the weekend. Renewed conflict between the US and Iran, including the announced closure of the Strait of Hormuz, sent oil prices surging and reignited concerns about persistent inflation. This environment placed additional pressure on high-valuation technology and growth stocks, contributing to the sector-wide weakness.