On July 28, Direxion Daily MSCI South Korea Bull 3x Shares declined 8.43% overnight, trading at $15.86/share, with turnover of $14.615 million. The ETF extended losses after fully reversing a pre-market rally driven by NVIDIA and SK Group's $500 billion AI infrastructure collaboration announcement.

On July 27, the ETF surged over 9% in pre-market trading after NVIDIA and SK Group announced a massive partnership to build AI infrastructure globally, with SK Hynix establishing a long-term AI memory supply agreement. However, the rally was entirely erased during regular trading as broader selling pressure overwhelmed the positive catalyst. The KOSPI index had crashed 5.72% on July 24 triggering a circuit breaker, with SK Hynix falling over 8% and Samsung Electronics dropping over 7%.

JPMorgan previously noted that Korean leveraged ETF deleveraging was approximately 75% complete, with margin balances down 13% from peak levels. Korean retail CFD long positions on chip stocks remain near record highs, requiring only 40% margin for full market exposure, raising the risk of cascading forced liquidations should prices continue declining.

The fund invests at least 80% of its net assets in financial instruments providing 3x daily leveraged exposure to the MSCI South Korea Index, covering approximately 85% of the free float-adjusted market capitalization of South Korean issuers.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)