Inverse and leveraged ETFs soared on Monday. T-Rex 2X Inverse MSTR Daily Target ETF rose 33%; Tradr 2X Short TSLA Daily ETF rose 31%; ProShares UltraPro Short QQQ rose 11%; Tradr 1.5X Short NVDA Daily ETF rose 8%.
U.S. stocks suffered their worst day of 2025 on Monday, prompting investors to warn that further selling was likely ahead and that a bear market for the Nasdaq Composite Index couldn’t be ruled out after the Trump administration failed to calm fears about a potential U.S. recession.
With the Nasdaq suffering its steepest drop since 2022 on Monday, the seven most valuable tech companies lost more than $750 billion in market value. Recession fears and concerns about a trade war drove the selloff.
“This could continue,” Peter Cardillo, chief market economist at Spartan Capital Securities, said on Monday, adding that the Nasdaq being in a correction and the S&P 500 being on the cusp of one could “bring on more selling until it exhausts itself.”
He added: “Is it too early to talk of bear market? The potential of a bear market in the Nasdaq is pretty high, at this point.”
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