SOXL is trading 15.4% down today as the information technology sector underperforms, driven by a sharp pullback in richly valued AI and semiconductor stocks.
- The tech-heavy XLK sector ETF fell approximately 2–3% as investors lock in profits following recent AI-fueled rallies.
- Downside pressure is being amplified by SOXL's 3x leveraged structure as markets focus on upcoming Federal Reserve minutes and digest recent volatility.
- Rising investor caution toward growth-oriented tech valuations is weighing heavily on the semiconductor space after a period of significant outperformance.