Technology stocks and sector-related ETFs plunged Tuesday on signs of a rotation from this year’s leaders.
The Technology Select Sector SPDR Fund (NYSEArca: XLK) fell 2.4% Tuesday after jumping 35.4% year-to-date.
Bearish traders, though, made a killing with bets like the ProShares UltraShort Semiconductors (NYSEArca: SSG), which takes the -2x or -200% daily performance of the Dow Jones U.S. Semiconductors Index, and the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS), which provides a -3x or -300% performance of the PHLX Semiconductor Select Index. On Tuesday, SSG jumped 7.7% and SOXS surged 13.0%.
As Congress mulls over the new tax bill, FANG stocks, which include Facebook, Apple, Netflix and Google, that led gains throughout the year declined the most in 22 months on Tuesday while all 15 members of the S&P 500 Semiconductor Index retreated, Bloomberg reports.