NEW YORK, June 9, 2026, 14:05 EDT
Chip stocks lost ground again Tuesday. Early gains in the sector didn’t hold and leveraged chip ETFs like Direxion Daily Semiconductor Bull 3X ETF (SOXL) got hit hardest, off 15.4%. The QQQ ETF, which tracks the Nasdaq-100, dropped 2.4% in recent trading.
Stocks sold off as the narrow AI trade driving this year’s gains comes under pressure. The S&P 500 and Nasdaq both dropped to their lowest levels in more than a month. Traders are keeping an eye on Wednesday’s Consumer Price Index report and the expected SpaceX listing set for later this week.
Leveraged ETFs helped push the move further. Direxion says SOXL targets 300% of the benchmark’s single-day return, not a triple over time. So the fund uses derivatives to ramp up daily swings, which can work against holders in sharp reversals.
SOXL started the session at $226.36 and hit $230.98 before falling back to around $178.97, according to market data. ProShares Ultra Technology, known as ROM, slid 7.0% Tuesday. The drop followed a steep loss Friday that, according to 24/7 Wall St., would have slashed a $10,000 stake to about $8,655.
ProShares says ROM aims for double the daily move of the S&P Technology Select Sector Index. The company notes returns over more than a day can stray, sometimes a lot, from the daily goal.
Large chip stocks traded lower. AMD dropped 7.0%, Broadcom slipped 3.7% and Nvidia declined 2.1%. The iShares Semiconductor ETF lost 5.2%. The Technology Select Sector SPDR ETF was down 3.8%.
Broadcom’s fiscal Q2 results last week delivered record revenue but did little to calm concerns around AI stock prices. Broadcom reported AI chip revenue up 143% to $10.8 billion. CEO Hock Tan said “the momentum continues,” and the company forecast AI semiconductor revenue will rise over 200% year-on-year this quarter. Broadcom Inc.
Tech stocks have been driving growth in the rally, GammaRoad Capital Partners CIO Jordan Rizzuto said, but with rate uncertainty, investors are locking in gains. Traders now see a 43% chance the Fed will hike rates by a quarter point in December, after a strong jobs report Friday, according to Reuters.
SpaceX is still an overhang. Benzinga quoted Jay Hatfield, chief executive at Infrastructure Capital Advisors, saying investors were “a little nervous” heading into the SpaceX IPO, with trading likely to stay “choppy.” Reuters reported Paul Nolte at Murphy & Sylvest saying some investors may be selling top semiconductor stocks to free up cash for the SpaceX listing. Benzinga
The selloff didn’t hit all corners of the market. According to AP, more S&P 500 stocks gained than dropped, though AI shares pulled the index down. A cooler inflation print or a smooth SpaceX deal could shift things.
The flip side is what happens if inflation runs hot again, yields go up, or investors start worrying more about AI spending. That could leave chip stocks under pressure, especially since valuations are high. Leveraged funds would likely add to any move instead of dampening it.
Investors aren’t only watching AI revenue growth anymore. They’re weighing what they pay for that growth, and in leveraged ETFs, there’s even less margin for mistakes.
