Wall Street Sell-Off: Leveraged ETFs and Individual Stocks Face Significant Declines

Font: Financial Modeling Prep  • Jul 29, 2026

• A broad market sell-off pushed the S&P 500 to four-week lows, impacting various sectors.
• Leveraged ETFs, designed for amplified returns, experienced the steepest declines, with the Daily Target 2X Long LMND ETF (NASDAQ: LMNX) leading market losers.
• Individual companies like Bandwidth Inc. (NASDAQ: BAND) saw significant drops despite positive earnings news, highlighting the influence of overall market sentiment.

A significant sell-off impacted Wall Street today, as reported by Benzinga, pushing the S&P 500 to four-week lows. This downturn saw several companies and funds experience major declines. Among the hardest hit was the Daily Target 2X Long LMND ETF (NASDAQ: LMNX), which led the market losers.

Daily Target 2X Long LMND ETF (NASDAQ: LMNX) plummeted by 48.21% to close at $7.30. This fund is a leveraged exchange-traded fund (ETF), meaning it aims to provide two times the daily performance of Lemonade, Inc. stock. Such funds are designed for short-term trading due to their high risk and volatility. A comparison of Daily Target 2X Long LMND ETF to Biostage is underway, as highlighted by Defense World.

Other leveraged ETFs also saw steep declines. The GraniteShares 2x Long VRT Daily ETF (NASDAQ: VRTL) fell 34.25% to $21.26, while the Daily Target 2X Long HIMS ETF (NASDAQ: HIMZ) dropped 28.93% to $22.92. As highlighted by ETF Trends, these funds are known for rapid price movements because they use financial tools to amplify daily returns.

Individual companies were not immune to the downturn. Parsons Corporation (NYSE: PSN), a defense and infrastructure provider, saw its stock fall 35.00% to $40.32, trading in a daily range of $36.26 to $47.99. Bandwidth Inc. (NASDAQ: BAND), a communications platform provider, dropped 29.28% to close at $36.95.

Interestingly, Bandwidth Inc.'s decline occurred despite positive news. The company surpassed its Q2 earnings estimates, driven by strong demand and an optimistic outlook, as highlighted by Zacks Investment Research. This suggests the stock was affected by broader market pressures rather than its own performance.

In summary, today's market was shaped by a wide sell-off that heavily impacted leveraged ETFs due to their amplified risk. The declines also affected individual stocks, with some like Bandwidth Inc. falling despite strong company-specific news, showing the influence of overall market sentiment.