AI chip ETF bulls hit with more losses as leveraged funds slide
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 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.