5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction

The tech-heavy Nasdaq Composite Index entered into correction territory (down 10% from the peak) last week thanks to a steep drop in the big tech stocks. This marks the 70th correction in its 52-year history. The so-called "Magnificent Seven" failed to reassure investors in the face of heightened geopolitical risks and rising Treasury yields.

This resulted in a spike in inverse or inverse leveraged tech/Nasdaq ETFs as these fetch outsized returns on quick market turns in a short span. The ETFs that spiked are $Direxion Daily Dow Jones Internet Bear 3X Shares ETF(WEBS.US)$ , $Direxion Daily GOOGL Bear 1X Shares(GGLS.US)$ , $Direxion Daily Semiconductor Bear 3x Shares ETF(SOXS.US)$ , $ProShares UltraPro Short QQQ ETF(SQQQ.US)$ , and $MicroSectors FANG+ Index -3X Inverse Leveraged ETN(FNGD.US)$ .

The "Magnificent Seven" stocks that powered this year's rally have wiped off $386 billion from their market capitalization after reporting disappointing earnings. Four of the seven stocks — $Microsoft(MSFT.US)$ , Alphabet (GOOG, GOOGL), Tesla TSLA and $Meta Platforms(META.US)$ — slumped after their earnings announcement, while $Amazon(AMZN.US)$ was the bright spot. The other two stocks, $Apple(AAPL.US)$ and $NVIDIA(NVDA.US)$ , are yet to report.

$Direxion Daily Dow Jones Internet Bear 3X Shares ETF(WEBS.US)$ – Up 11.8%

$Direxion Daily GOOGL Bear 1X Shares(GGLS.US)$ – Up 10%

$Direxion Daily Semiconductor Bear 3x Shares ETF(SOXS.US)$ – Up 8.1%

$ProShares UltraPro Short QQQ ETF(SQQQ.US)$ – Up 7.9%

$MicroSectors FANG+ Index -3X Inverse Leveraged ETN(FNGD.US)$ – Up 6.5%

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