Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a dramatic 24-hour plunge of 9.58% during Wednesday's trading session, as the broader market faced significant headwinds. The leveraged ETF, which aims to deliver three times the daily performance of the semiconductor sector, was hit hard by a combination of factors affecting both the tech industry and the overall market sentiment.

The sharp decline in SOXL came as the S&P 500 sold off sharply, closing below 5,000 points for the first time in almost a year. Investor concerns were heightened by the confirmation that the US would impose a 104% levy on goods imported from China, effective immediately. This escalation in trade tensions particularly impacted tech stocks, with semiconductor companies being especially vulnerable due to their reliance on global supply chains.

Options traders showed mixed sentiment towards SOXL, with 607,900 contracts traded, down 8% from the previous day. Interestingly, call options accounted for 68% of the overall trades, with high volume seen for the $15 strike call option expiring April 11. This suggests that some traders are betting on a potential rebound, despite the current bearish trend. However, the significant leverage of SOXL amplifies both gains and losses, making it a highly volatile instrument in the current uncertain market environment.