Best-Performing Leveraged ETF Areas of February

Market Performance - Wall Street has underperformed in the past month, with the S&P 500 down 0.9%, the Dow Jones down 1.3%, and the Nasdaq Composite down 3.4% as of February 27, 2026. The small-cap index Russell 2000, however, gained 0.7% during the same period [1]. AI Industry Concerns - Artificial intelligence (AI) has become a source of market panic, with investors questioning the sustainability of labor-intensive business models. Recent AI startup releases have introduced automation tools affecting various sectors including legal, marketing, finance, and research [2]. - AI startup Anthropic announced its Claude Code tool can modernize COBOL, impacting IBM negatively, with IBM shares declining 23.7% over the past month as of February 27, 2026 [3]. Geopolitical Tensions - U.S.-Iran tensions escalated in February, with U.S. Vice President JD Vance indicating military action could be an option if diplomatic efforts fail [4]. - Iran conducted military exercises in the Strait of Hormuz, raising concerns about potential disruptions to global oil shipments [5]. - On February 28, 2026, the U.S. and Israel conducted strikes against Iran, aiming to dismantle its nuclear program, which could lead to a larger conflict affecting oil markets [6]. - Reports indicate that Iran's Supreme Leader, Ayatollah Ali Khamenei, was killed during these strikes [7]. Company Earnings - NVIDIA exceeded analysts' expectations for both revenue and earnings in its latest report, leading to a surge in small investor buying on February 27, 2026 [8]. - Small traders recorded their highest net buying levels in NVIDIA stock during the first 80 minutes of trading, a trend not seen since at least 2012 [9]. ETF Performance - Direxion MSCI Daily South Korea Bull 3X Shares (KORU) rose 96.47%, benefiting from strong semiconductor demand linked to the global AI boom [11]. - MicroSectors U.S. Big Oil 3 Leveraged ETN (NRGU) increased by 34.6% due to rising oil prices amid geopolitical tensions, with the United States Oil Fund LP (USO) gaining 8.8% over the past month [12]. - Direxion Daily Utilities Bull 3X Shares (UTSL) rose 34%, driven by increased energy demand for data centers [14]. - Direxion Daily Industrials Bull 3X Shares (DUSL) increased by 22.5%, with the industrials sector performing well, as evidenced by the State Street Industrial Select Sector SPDR ETF (XLI) gaining 5.7% [15].