Taiwan Semiconductor Manufacturing Co. (TSMC) played a pivotal role in the positive movement of the Direxion Daily TSM Bull 2X Shares ETF on December 18, 2024. TSMC, a major player in the semiconductor industry, saw its stock rise by 0.95% to close at NT$1,085.00, contributing significantly to the overall gains in the Taiwan Stock Exchange's Taiex index. The market's focus on large-cap stocks, particularly TSMC, was driven by increased buying activity in the afternoon session, which helped the broader market recover from earlier losses. This buying interest was partly fueled by bargain hunters taking advantage of the recent dip in TSMC's stock price, as well as a general rebound in tech stocks.
The semiconductor sector's performance was further bolstered by gains in other tech companies, such as United Microelectronics Corp., which rose 2.70%, and Asustek Computer Inc., which gained 2.35%. The electronics sector as a whole saw an increase of 0.82%, reflecting a broader recovery in tech stocks. This sectoral strength was a key factor in the ETF's upward movement, as it tracks the performance of TSMC and other related stocks. Despite the cautious market sentiment ahead of the U.S. Federal Reserve's interest rate decision, the willingness of investors to take risks and pick up bargains in the semiconductor space provided a positive backdrop for the ETF.
The Direxion Daily TSM Bull 2X Shares ETF rose to $31.92, marking a 3.20% increase from the previous close.