Direxion Daily Small Cap Bull 3X Shares is trading 2.8% up today as traders rotate back into U.S. small caps following a sharp pullback tied to rising inflation, Fed uncertainty, and Middle East tensions.
- The 3x leveraged ETF is amplifying a futures-led bounce in risk assets following CPI and PPI data, serving as a high-beta vehicle for a short-term relief rally.
- Small caps are seeing a recovery despite heightened geopolitical risks, including Iranβs closure of the Strait of Hormuz, which had previously weighed on the Russell 2000.
- Investors are capitalizing on the rebound in the Russell 2000 as the market attempts to shake off recent volatility and uncertainty surrounding Federal Reserve policy.