On July 21, Direxion Daily Technology Bull 3x rose 5.08% in pre-market trading, trading at $186.91/share, with turnover of $359,100. The rebound follows a period of weakness after the fund dropped over 8% intraday on July 17 due to South Korean leveraged ETF regulatory tightening and memory stock sell-offs.

Multiple catalysts converged to drive the recovery. Research firm Omdia sharply raised its full-year China semiconductor market growth forecast to 92.9%, projecting market size of $812.08 billion — an upward revision of $265.6 billion from its prior estimate — with AI infrastructure buildout identified as the core driver. SK Hynix Chairman Choi Tae-won stated AI semiconductor demand is expected to grow 60%-100% next year while new supply remains near zero, describing the global scramble for memory chips as reaching panic levels. Concurrently, SEMI forecast global semiconductor equipment sales at $165.9 billion for the year, up 23.2% YoY, while TSMC raised its full-year capital expenditure guidance to $60-64 billion. As a 3x leveraged ETF, TECL amplifies gains in the underlying technology sector during such broad-based rallies.

The fund invests at least 80% of its net assets in financial instruments that provide 3X daily leveraged exposure to a technology sector index, including swap agreements, index securities, and ETFs. It is non-diversified.

(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.)