Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a significant 24-hour plunge of 5.09% in Tuesday's trading session, reflecting broader weakness in the semiconductor sector. The decline was part of a sector-wide sell-off, with major chip stocks facing substantial losses in overnight trading.

The downturn was primarily triggered by Texas Instruments' (TXN) disappointing quarterly profit forecast, which fell short of investor expectations. Texas Instruments, a bellwether for the semiconductor industry, saw its stock plummet by 11%, dragging down other chip manufacturers. The company's outlook pointed to weaker-than-anticipated demand for its analog chips from some customers, raising concerns about the overall health of the semiconductor market.

Adding to the sector's woes, ongoing trade tensions and tariff-related uncertainties continue to cast a shadow over chipmakers. While companies like Texas Instruments don't face direct tariffs, the increased costs of chip-making tools and reduced spending by end customers are creating headwinds for the industry. This challenging environment is likely to keep pressure on leveraged ETFs like SOXL, which amplify the sector's movements, potentially leading to continued volatility in the near term.