Direxion Daily Semiconductors Bull 3x Shares (SOXL) experienced a sharp 5.09% decline in pre-market trading on Wednesday, continuing its downward trajectory from the previous day's 9.58% drop. This leveraged ETF, which aims to deliver three times the daily performance of the semiconductor sector, has been hit hard by a combination of factors affecting both the tech industry and overall market sentiment.

The plunge in SOXL's value can be attributed to several key factors. First, the broader market faced significant headwinds, with the S&P 500 selling off sharply and closing below 5,000 points for the first time in almost a year. Adding to the pressure, the U.S. confirmed it would impose a 104% levy on goods imported from China, effective immediately. This escalation in trade tensions has particularly impacted tech stocks, with semiconductor companies being especially vulnerable due to their reliance on global supply chains.

Despite the bearish trend, options traders showed mixed sentiment towards SOXL. In the previous trading session, 607,900 contracts were traded, with call options accounting for 68% of the overall trades. High volume was seen for the $15 strike call option expiring April 11, suggesting that some traders are betting on a potential rebound. However, investors should note that SOXL's significant leverage amplifies both gains and losses, making it a highly volatile instrument in the current uncertain market environment.