Investors Betting on Tech Stock Rebound Burned by Selloff

Investors who stake large connected tech stocks rebounding from a reliable July are seeing their money evaporate successful nan existent meltdown. 

A Bloomberg analysis of definite leveraged tech exchange-traded costs (ETFs) showed that money poured into them arsenic tech stocks wobbled past month. Those bets person proved achy amid a selloff pursuing past Friday’s weaker-than-expected jobs report, which fueled fears of a coming recession.

Tide Turns for Major Tech-Focused ETFs

The Direxion Daily Semiconductor Bull 3x Shares (SOXL) brought successful a grounds $2.8 cardinal past month, according to Bloomberg. The money seeks regular returns, earlier fees and expenses, that are 3 times nan capacity of nan New York Stock Exchange Semiconductor Index. Its shares astatine Monday's adjacent had fallen astir 60% from their caller highest connected July 10. 

The ProShares UltraPro QQQ (TQQQ) took successful $830 cardinal successful July, nan astir of immoderate period since 2022, and much than $400 cardinal successful nan first fewer days of August, according to nan Bloomberg report. This money intends for a regular return, minus fees, adjacent to 3 times nan regular capacity of nan Nasdaq 100 Index. The ETF has shed astir a 3rd of its worth since July 10.

GraniteShares 2x Long NVDA Daily ETF (NVDL)—which tracks superstar spot shaper Nvidia’s (NVDA) banal activity and seeks returns earlier expenses that are 2 times Nvidia's regular percent change—picked up $560 cardinal successful inflows past period aft taking successful an all-time precocious of $1.6 cardinal successful June. Its shares ended Monday astir 50% disconnected their July 10 price.