FNGU ETN drops 16% in one day amid tech selloff and rising interest rates.

The MicroSectors FANG+ 3X Leveraged ETN (FNGU) fell 16% in a single session on June 5, 2026, driven by a sharp selloff in major tech stocks like NVIDIA and Broadcom, and rising short-term interest rates following a strong jobs report. Despite a 22% drop over five days, FNGU remains up 28.1% over the past year, reflecting its leveraged exposure to tech giants. The note’s daily 3x leverage amplifies both gains and losses, especially in volatile markets with concentrated holdings. Investors should watch upcoming AI capital expenditure reports, Alphabet’s stock sale, and the SpaceX IPO for clues on tech sector direction amid changing interest rate dynamics.