The ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (NVDX) is experiencing a downturn due to several factors impacting its underlying asset, NVIDIA. A significant contributor to this decline is the Biden administration's proposal to impose new restrictions on AI chip exports, which has raised concerns among semiconductor industry executives. This proposal aims to limit the export of advanced computer chips to preserve the U.S.'s competitive edge in AI technology, potentially affecting NVIDIA's business as it leads the AI boom with its chips. Additionally, NVIDIA is facing challenges with its new Blackwell chips, which have caused delays for major clients like Microsoft, Amazon, and Alphabet, further impacting investor sentiment.
Moreover, a recent rise in bond yields has put pressure on high-valuation sectors such as technology, crypto, and AI, contributing to a broader selloff in the market. This was exacerbated by a stronger-than-expected U.S. jobs report, which has led traders to reduce their expectations for Federal Reserve rate cuts in 2025. The combination of these factors has led to a decrease in NVIDIA's stock price, which is reflected in the performance of the NVDX ETF.
The NVDX ETF is currently priced at $13.34, marking a 5.72% decrease from its previous close.