Direxion Daily Semiconductor Bear 3X Shares is trading 10.8% down in pre-market as the semiconductor complex and broader equity futures bounce following the Federal Reserve's decision to hold rates and remove forward guidance.
- The Fed's shift has fostered a risk-on tone across the market, lifting technology and chip names and creating significant downward pressure on this inverse product.
- As this ETF delivers -3x the daily move of semiconductor stocks, the pre-market strength in the PHLX Semiconductor Index and related ETFs is translating into outsized losses.
- Broader equity futures are trending higher as investors react to the removal of forward guidance, further weighing on bearish leveraged instruments.