Direxion Daily Semiconductors Bull 3x Shares (SOXL) surged 5.29% in overnight trading on Tuesday, staging a sharp recovery following a brutal sell-off in the prior session that saw the leveraged ETF plunge more than 15% intraday.

The rebound was fueled by an oversold bounce after extreme selling pressure gripped the semiconductor sector, alongside a strong earnings report from NXP Semiconductors. NXP posted second-quarter results that exceeded market expectations on both revenue and profit, and delivered above-consensus third-quarter guidance, offering fundamental support to the battered chip space.

The prior session's sell-off was triggered by renewed concerns over AI capital expenditure sustainability, after reports emerged that NVIDIA was planning to provide approximately $250 billion in financing guarantees for OpenAI. The Philadelphia Semiconductor Index fell nearly 5%, with NVIDIA dropping around 5% and AMD declining about 8%. As a 3x leveraged ETF tracking the thirty largest U.S. semiconductor companies, SOXL's volatility is significantly amplified in both directions, making the overnight recovery equally dramatic.