The Direxion Daily Semiconductors Bear 3x Shares (SOXS) experienced a significant pre-market surge of 5.38%. As a leveraged inverse ETF, SOXS gains value when the semiconductor sector declines.

The movement appears driven by notable weakness in specific semiconductor stocks following earnings releases. In overnight trading, Qualcomm shares fell approximately 10% after the company provided a second-quarter revenue and profit forecast below Wall Street estimates, citing concerns over a global memory supply shortage impacting mobile phone sales. Additionally, shares of Arm Holdings dropped over 7% as its licensing revenues slightly missed analyst expectations, despite a strong overall revenue forecast.

These substantial declines from two major semiconductor companies contributed to negative sentiment within the sector, leading to the inverse ETF's sharp gain during the pre-market session.