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Direxion's 3x leveraged South Korea fund plunges 42% in a day amid memory chip sector sell-off

Market News
07 Jun 2026
24/7 Wall Street
View Source
Bearish
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Direxion Daily MSCI South Korea Bull 3X Shares (KORU) dropped about 42% on June 5, 2026, driven by a 14% fall in the underlying MSCI Korea index, which is heavily weighted in memory chip makers Samsung Electronics and SK Hynix. The sell-off followed Broadcom's cautious AI chip revenue guidance and a strong US jobs report that spiked Treasury yields, causing a broader tech sell-off. KORU's 3x leverage amplified losses, turning a sector-specific hit into a dramatic fund crash. Future performance depends on memory chip pricing, upcoming earnings from Micron, and macroeconomic factors like US Treasury yields and Korean won stability.

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