Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMichael WilliamsSun, June 7, 2026 at 3:15 PM GMT+2 7 min readQuick ReadTECL shed 20% Friday but still holds a 10-year return of 5,691%, proof that 3x daily leverage amplifies crashes and compounding equally.Broadcom's $16B Q3 AI guide missed the Street's $17B target and NVDA fell 6%, together crushing XLK's top-heavy index in a single session.Narrow breadth and bubble-era put/call ratios meant Broadcom's single earnings miss was all it took to cascade a 20% leveraged wipeout.It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor)If you closed Thursday with $10,000 in Direxion Daily Technology Bull 3X Shares (NYSEARCA:TECL), you opened the weekend with about $8,000. TECL closed Friday June 5 at $202.59, down 19.93% from Thursday's $253.01. The underlying it leverages, Technology Select Sector SPDR Fund (NYSEARCA:XLK), fell 6.66% from $193.17 to $180.30, its worst session in over a year. The math is clean, and it is exactly what TECL is built to do.The Arithmetic of a 3x Wrapper on a Bad DayTECL is engineered to deliver three times the daily return of the Technology Select Sector Index, the same index XLK tracks. When XLK drops 6.66% in a session, the wrapper is supposed to spit out roughly triple that, and it did. The 19.93% single-day loss is the leverage doing its job, not a malfunction or a tracking blowout. There is no asterisk and no fee story large enough to explain it. The whole event lives in two numbers, the sector index and the multiplier on top of it.TECL is still up 72.62% year-to-date even after Friday, and up 182.33% over the past year. The ten-year return for the fund is a sci-fi 5,691%, against 810% for XLK over the same window. So the headline loss is real and so is the prior run. Both are products of the same machinery.Why XLK Moves Like One Stock Some DaysThe mechanism behind Friday is concentration meeting a catalyst. XLK's top three holdings, NVIDIA (NASDAQ:NVDA), Apple, and Microsoft (NASDAQ:MSFT), make up 40% of the fund. Add Broadcom (NASDAQ:AVGO) at 5.38% and you are at 45.38% in four names. The remaining 60-plus holdings cannot meaningfully offset a mega-cap shock when one happens. On Friday, two of those names took the index down by themselves.Broadcom was the spark. Its June 3 earnings were strong on paper, with Q2 revenue of $22.19 billion, AI semiconductor revenue of $10.8 billion, up 143% year-over-year, and Q3 AI guidance of $16.0 billion. CEO Hock Tan called out "accelerating growth in AI semiconductor revenue". The problem was the bar. The Street had been priced for closer to $17.2 billion in Q3 AI semis, and Tan signaled Google may use multiple chip suppliers, which crimps the custom-accelerator story. AVGO finished Friday at $385.73, down 7.92% on the day and 13.66% on the week.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info