NVDL Crashes 12% in a Day as Nvidia Loses $279 Billion in Market Cap

The GraniteShares 2x Long NVDA Daily ETF (NVDL) experienced a sharp 12% decline in a single session on Friday, June 5, 2026, closing at $95.91 after opening at $109.45. The drop was triggered by a 6.2% fall in NVIDIA (NVDA) shares from $218.66 to $205.10, which wiped out roughly $279 billion in market value.

Possible Causes

The source did not specify a direct catalyst for Nvidia's decline, but such moves often stem from:

• Profit-taking after recent gains.
• Regulatory concerns or growth outlook changes.
• Liquidity issues or position liquidations.

Context

This move comes at a sensitive time for the technology sector, with semiconductor stocks experiencing heightened volatility. The NVDL ETF, which aims to deliver twice the daily return of NVDA, illustrates how leverage can magnify losses on negative days.

Similar Moves in the Sector

No similar moves were mentioned in the source, but leveraged ETFs like NVDL are known to experience amplified volatility compared to their underlying assets, especially during market turbulence.

What This Means for Investors

This event serves as a reminder of the risks associated with daily leveraged ETFs. A 6.2% decline in the underlying stock translates to a 12% drop in the fund, compounding losses on down days. Investors holding NVDL should be aware that leverage works both ways, increasing potential losses.