Direxion Daily Semiconductor Bear 3X Shares (SOXS), an inverse leveraged exchange-traded fund (ETF) that seeks to deliver three times the inverse daily performance of the PHLX Semiconductor Sector Index, plummeted by 7.76% in the intraday trading session on Wednesday.

The sharp decline in SOXS can be attributed to the strength in semiconductor stocks, as evidenced by the significant drop of 6.3% in the fund's price reported earlier. When semiconductor stocks rally, inverse leveraged ETFs like SOXS, which bet against the performance of the underlying index, experience substantial losses.

Inverse leveraged ETFs are designed for short-term trading and are generally not suitable for long-term investors due to their inherent volatility and compounding effects. Investors should exercise caution when considering these products and thoroughly understand their risks and implications.