Business · Markets · 17 hrs ago
SOXL Drops Nearly 39% as US Semiconductor Stocks Slide
US semiconductor stocks suffered a sharp sell-off, pushing the Philadelphia Semiconductor Index to its lowest close in about seven months.
On November 5, the index fell 12.2%, its biggest one-day drop since March 2020.
SOXL, a fund designed to deliver three times the semiconductor index’s daily return, fell 38.71% to $40.87.
TQQQ, which targets three times the Nasdaq-100’s daily return, dropped 18.92%, while SOXL rebounded by more than 12% the next day.
South Korean investors had been major buyers: they bought a net $2.97 billion of SOXL in October, the most of any overseas stock, and $221.14 million of TQQQ.
These funds aim to multiply daily gains and losses, but their returns over longer periods can differ from three times the index, and volatile trading can compound losses.
Policy uncertainty around AI investment and profit-taking in technology stocks weighed on shares, leaving investors facing continued short-term volatility.
The Direxion Daily Semiconductor Bull 3X ETF, known as SOXL, fell 38.71% on Nov. 5, closing at $40.87.
The Philadelphia Semiconductor Index dropped 12.2% to 9,011.14, its largest one-day fall since March 2020.
SOXL’s trading volume rose 122.3% from the previous day to 549.12 million shares.
The Nasdaq-100 3X ETF TQQQ fell 18.92% that day, while SOXL rebounded more than 12% on Nov. 6.
The article cited uncertainty over AI-related policy and profit-taking in technology stocks as factors behind the semiconductor sell-off.
- Who
- SOXL and TQQQ investors, including South Korean investors.
- What
- SOXL fell 38.71%; TQQQ fell 18.92% as US semiconductor and technology stocks slid.
- When
- Nov. 5, with SOXL rebounding more than 12% on Nov. 6.
- Where
- US stock markets.
- Why
- The article cited uncertainty over AI-related policy and profit-taking pressure across technology stocks.
This story does not have two clearly opposing sides.
The Philadelphia Semiconductor Index fell 12.2% to 9,011.14, and SOXL closed down 38.71%.
SOXL rebounded more than 12%.
South Korean investors’ net purchases of SOXL totaled $2.96785 billion, according to the Korea Securities Depository.
- SOXL close on Nov. 5
- $40.87
- SOXL daily decline
- 38.71%
- Philadelphia Semiconductor Index close
- 9,011.14, down 12.2%
- SOXL trading volume
- 549.12 million shares, up 122.3%
- TQQQ daily decline
- 18.92%, closing at $50.47