5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction
The tech-heavy Nasdaq Composite Index entered into correction territory (down 10% from the peak) last week thanks to a steep drop in the big tech stocks. This marks the 70th correction in its 52-year history. The so-called "Magnificent Seven" failed to reassure investors in the face of heightened geopolitical risks and rising Treasury yields.
This resulted in a spike in inverse or inverse leveraged tech/Nasdaq ETFs as these fetch outsized returns on quick market turns in a short span. The ETFs that spiked are $Direxion Daily Dow Jones Internet Bear 3X Shares ETF (WEBS.US)$ , $Direxion Daily GOOGL Bear 1X Shares (GGLS.US)$ , $Direxion Daily Semiconductor Bear 3x Shares ETF (SOXS.US)$ , $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ , and $MicroSectors FANG+ Index -3X Inverse Leveraged ETN (FNGD.US)$ .
The "Magnificent Seven" stocks that powered this year's rally have wiped off $386 billion from their market capitalization after reporting disappointing earnings. Four of the seven stocks — $Microsoft (MSFT.US)$ , Alphabet (GOOG, GOOGL), Tesla TSLA and $Meta Platforms (META.US)$ — slumped after their earnings announcement, while $Amazon (AMZN.US)$ was the bright spot. The other two stocks, $Apple (AAPL.US)$ and $NVIDIA (NVDA.US)$ , are yet to report.
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