SK Hynix's American depositary shares surged more than 24% Tuesday, climbing to fresh highs since the memory chipmaker's Nasdaq debut, reversing much of the damage from Monday's historic single-day plunge in Seoul. Here are five factors driving Tuesday's dramatic rebound.

1. Newly launched leveraged ETFs amplified trading volume. The most immediate catalyst behind Tuesday's sharp move was the debut of geared, single-stock exchange-traded funds tied directly to SK Hynix. GraniteShares launched both a 2x Long SK hynix Daily ETF, trading under the ticker SKUU, and a 2x Short version, SKDD, while ProShares introduced its own 2x long single-stock fund, ProShares Ultra SK hynix, trading as SKHU. The introduction of those geared products pulled in heavy trading volume that amplified underlying moves in the stock throughout the session. Analysts at 24/7 Wall St noted that follow-through in related memory names such as Micron, SanDisk and Western Digital would help confirm whether the broader rally reflected genuine sector rotation rather than a one-day squeeze tied specifically to the ETF launches.

2. Options trading began on U.S. exchanges for the first time. Tuesday also marked the first day options on SKHY shares became available to trade on U.S. exchanges, a development that drew significant speculative interest almost immediately. The most actively traded contract as of Tuesday afternoon was a $185 strike call option, with volume around 2,900 contracts, followed closely by a $145 strike put, while August calls with a $200 strike price also saw heavy interest, exceeding 1,500 contracts in volume. Daniel Kirsch, head of options at Piper Sandler, said the new market was........

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