The Direxion Daily Semiconductor Bear 3X Shares ETF rose sharply after a brokerage cut SK Hynix’s Q2 earnings forecast over fixed-price HBM contracts.
The Direxion Daily Semiconductor Bear 3X Shares ETF (SOXS) climbed 8.95% to close at $4.45 Monday, reversing a year-to-date decline of 92%. The move followed a broad selloff in chip stocks, driven by a downgrade of SK Hynix’s Q2 earnings forecast.
A South Korean brokerage lowered its outlook for SK Hynix, citing concerns over fixed-price high-bandwidth memory (HBM) contracts. The downgrade triggered profit-taking across semiconductor stocks, including AMD and NVIDIA, which each fell roughly 4%. SOXS, an inverse-leveraged ETF, benefits from declines in its underlying semiconductor benchmark.
Escalating Middle East tensions also weighed on sentiment, contributing to the sector’s pullback. The ETF’s structure, which resets daily, has amplified losses over time despite Monday’s gain.