The Direxion Daily Semiconductors Bear 3x Shares (SOXS) experienced a significant surge of 5.07% in pre-market trading on Monday, as the broader US stock market faced a sharp sell-off. This movement reflects the inverse relationship between SOXS and the performance of semiconductor stocks.

SOXS is an inverse leveraged ETF designed to provide three times the inverse daily performance of the ICE Semiconductor Index. As semiconductor stocks decline, SOXS typically rises, making it a popular instrument for traders betting against the semiconductor sector or hedging their portfolios during market downturns.

The pre-market jump in SOXS suggests that investors are anticipating weakness in the semiconductor industry as part of a broader market decline. This bearish sentiment appears to be driven by various factors affecting the overall stock market, including concerns about inflation, interest rates, and global economic uncertainties.

It's worth noting that SOXS is not alone in its upward movement. Other inverse ETFs are also benefiting from the market downturn, with some showing even larger gains. For instance, earlier in the morning, SOXS was reported to be up 16%, while other inverse ETFs like SRTY, SQQQ, and SPXU rose between 13% and 15%. This trend underscores the current risk-off sentiment prevailing in the market, particularly affecting technology and growth stocks.