The Tradr 2X Long SNDK Daily ETF (SNXX) experienced a sharp pre-market plummet of 9.02% on Tuesday. As a leveraged exchange-traded fund designed to deliver twice the daily return of SanDisk, the decline reflects amplified downward pressure from its underlying asset.

The move was part of a broad sell-off in US optical communication and storage concept stocks during the pre-market session. SanDisk itself fell over 3%, while sector peers including Corning, Astera Labs, and Credo also posted significant losses, indicating widespread weakness dragging down related names.

Analysts suggest the sharp decline may also be attributed to profit-taking activity, following a period of strong momentum where the ETF had posted substantial gains in recent sessions. This pullback comes after the leveraged product had risen significantly in the days prior, prompting some investors to lock in profits.