Direxion Daily Semiconductors Bull 3x Shares (SOXL), a leveraged ETF tracking the semiconductor sector, experienced a dramatic 24-hour plunge of 9.58% in pre-market trading on Wednesday. This sharp decline follows a broader market sell-off that hit technology and semiconductor stocks particularly hard.

The steep drop in SOXL's value can be attributed to several factors. First, the S&P 500 sold off sharply on Tuesday, closing below 5,000 points for the first time in almost a year. This market-wide decline was exacerbated by fading investor hopes for any imminent U.S. delays or concessions on tariffs ahead of a midnight deadline. The semiconductor sector, which SOXL aims to provide leveraged exposure to, was caught in the crossfire of these macro-economic concerns.

Despite the significant downturn, options activity for SOXL remained robust. Tuesday saw 607,900 SOXL option contracts traded, with a notable 68% being call options. This suggests that some traders are positioning for a potential rebound, with particularly high volume observed for the $15 strike call option expiring on April 11. However, as a leveraged ETF, SOXL's 3x multiplication of the semiconductor sector's performance means it's prone to amplified losses during market downturns, as evidenced by its near 10% drop on Tuesday alone.