Direxion Daily Technology Bull 3x Shares

TECL

Market cap $4.08B

Direxion Daily Technology Bull 3X Shares ETF is rated Buy for active traders seeking to exploit sector volatility through 2026. AI investment uncertainty and capital outlays are expected to drive heightened volatility, creating trading opportunities rather than sustained growth. TECL's 3x leverage and daily reset structure make it suitable only for short-term, daily trading, not long-term holding.

Fears of an artificial intelligence (AI) bubble were renewed when shares of Oracle took a dive after missing Q2 revenue and earnings projections for fiscal year 2026. This caused a spillover effect into other AI-related names.

Risk-fueled and volatile — these are words that investors with low-risk profiles typically don't want to hear. However, for the uninhibited short-term trader, it's music to their ears.

As an eventful year in 2025 marches toward the final stretch, the broader economy has been hit with several headwinds, ranging from the geopolitical impacts of tariffs to a weakened labor market. Subsequently, many experts fear that the U.S. may soon face stagflation.

TECL offers 3x daily leverage on the Technology Select Sector Index, suitable only for risk-tolerant, short-term traders due to compounding risks. Technology sector momentum is stalling amid macroeconomic uncertainty, with rate cuts likely delayed until after the September 2025 FOMC meeting. The sector may also be waiting until after Nvidia reports earnings on August 27 after market close, setting the tone for AI investments going forward.

tech sector's struggles early in 2025 are well-documented. But those doldrums rapidly gave way to bullish sentiment that's carried gauges such as the Nasdaq-100 (NDX) and the S&P Technology Select Sector indexes to or close to new highs.

Risk is in vogue with ETF investors again. Signs of speculative fervor are increasingly clear — but are investors willing to jump in?

TECL offers 3x daily leverage on the Technology Select Sector Index, ideal for traders seeking amplified short-term exposure to tech stocks. I am bullish on the underlying Index, especially due to strong prospects for Microsoft, Nvidia, and Broadcom, despite some potential headwinds for Apple stock. TECL's leverage is reset daily; holding beyond one day can lead to compounding effects and significant deviation from the 3x target, increasing risk.

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Major indexes in the stock market have been upended by tariff news as of late. Tech has been taking the brunt of the blow as the Nasdaq-100 has been sliding since mid-February.