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Tech ETF Plummets 13% in One Day
8 Jun
Summary
- Leveraged tech ETF ROM saw a 13.45% drop in a single session.
- Broadcom reported strong AI revenue growth but its stock declined.
- NVIDIA and Apple are key components driving the tech sector's performance.
On Friday, June 5, 2026, investors in the ProShares Ultra Technology ETF (ROM) faced a severe downturn, with a $10,000 investment shrinking to approximately $8,655 due to a single-session loss of 13.45%. This leveraged fund aims to deliver twice the daily return of the Dow Jones U.S. Technology Index, which itself fell about 7% that day.
The significant drop within ROM is attributable to its heavy concentration in top-performing tech stocks. NVIDIA, Apple, Microsoft, and Broadcom collectively represent over 45% of the index it tracks, with semiconductors alone making up nearly 39%. Broadcom, despite reporting a spectacular second quarter for fiscal year 2026 with AI semiconductor revenue up 143%, saw its stock price fall roughly 8% on June 5.
Market sentiment was further impacted by U.S. May payroll data, which exceeded expectations and dampened hopes for imminent interest rate cuts. The upcoming Apple WWDC keynote on June 8 and the 2-year yield nearing 4.25% are identified as potential catalysts for ROM's next significant market movement.
