Direxion Daily Semiconductors Bull 3x Shares (SOXL) soared 5.01% in pre-market trading, as a combination of improving sentiment from robust technology earnings and a sharp technical rebound from deeply oversold conditions fueled the leveraged ETF's recovery.

The rally followed a severe selloff that had wiped out over 40% of the fund's value, plummeting from around $150 to approximately $87. Analysts noted that the semiconductor industry's fundamentals have not materially deteriorated, and the prior decline appeared to be a disorderly rout rather than a fundamental panic. The rebound was triggered by a wave of positive earnings catalysts, including Lam Research topping quarterly expectations and issuing upbeat guidance on AI-driven tool demand, and Microsoft beating estimates with accelerating Azure growth. Applied Materials also received target price hikes from multiple firms, further boosting confidence.

Additionally, UMC reported better-than-expected earnings and raised its capital expenditure budget, while Bank of America flagged a mid-to-long-term positioning window for the sector. Short-term capital stepped in at depressed levels, and the fund's 3x daily leveraged exposure amplified the upside move as dip-buyers returned to the semiconductor space.