The GraniteShares 2x Long NOW Daily ETF (NASDAQ: NOWL) posted a sharp rally during the May 15 trading session as investors aggressively rotated back into leveraged technology exposure. The ETF gained 12.16% to trade at 4.5102, reflecting renewed bullish sentiment surrounding artificial intelligence infrastructure, enterprise software demand, and momentum-driven equity strategies.

The strong move higher came despite broader market volatility and increased investor caution across several major U.S. indexes. Leveraged ETFs tied to high-growth technology themes continued attracting speculative capital as traders positioned for continued strength in AI-linked companies and cloud software providers.

NOWL Extends Momentum Amid AI-Focused Market Rally

The GraniteShares 2x Long NOW Daily ETF is designed to deliver twice the daily performance of ServiceNow Inc., a major enterprise software company that has become increasingly associated with AI-driven automation and workflow solutions. As investor enthusiasm surrounding artificial intelligence continues reshaping equity markets, leveraged funds tied to AI-related companies have experienced heightened trading activity and volatility.

During the May 15 session, NOWL traded within a range of 4.1301 to 4.5560 before stabilizing near session highs in afternoon trading. The ETF opened at 4.1400 and steadily advanced throughout the day as buying momentum accelerated during mid-session trading.

Trading volume exceeded 21.8 million shares, substantially above the ETF’s average daily volume of approximately 5.87 million shares. Elevated trading activity often signals increased participation from short-term traders, momentum-focused investors, and institutional participants seeking amplified exposure to high-growth sectors.

The ETF currently manages net assets of approximately $106.25 million and carries an expense ratio of 1.50%. Leveraged ETFs typically experience higher volatility than traditional funds due to their daily reset structure and amplified exposure strategy.

Leveraged ETFs Gain Attention as Volatility Increases

The latest rally in NOWL reflects broader investor appetite for leveraged products tied to artificial intelligence and cloud computing themes. As AI adoption expands across enterprise software, cybersecurity, and data management industries, traders have increasingly targeted high-beta investment vehicles capable of generating amplified short-term returns.

However, leveraged ETFs also carry elevated risk profiles. Because these products are designed to track daily percentage moves rather than long-term performance, periods of sustained volatility can create performance divergence over extended time horizons.

Despite the strong one-day rally, NOWL’s year-to-date total return remains deeply negative at approximately 74.02%, highlighting the substantial volatility associated with leveraged investment products. Sharp swings in underlying technology stocks can lead to significant gains during bullish sessions but equally large declines during market corrections.

The fund’s recent rebound suggests investors remain willing to accept elevated risk exposure in pursuit of AI-related growth opportunities. Market participants continue focusing on whether artificial intelligence spending trends can sustain current valuations across software and semiconductor sectors.

Technology Sentiment Continues Driving Speculative Capital Flows

Broader investor sentiment within the technology sector remains heavily influenced by expectations surrounding artificial intelligence commercialization, enterprise automation, and cloud infrastructure demand. Companies positioned within these themes have consistently attracted higher valuations and increased institutional attention throughout 2026.

ServiceNow itself has benefited from growing demand for AI-powered enterprise solutions, particularly among corporations seeking workflow automation and productivity improvements. Leveraged products such as NOWL amplify investor exposure to these trends, making them attractive to active traders during periods of strong market momentum.

At the same time, rising market volatility and concerns surrounding interest rates continue creating uncertainty for growth-oriented equities. Higher Treasury yields and tighter financial conditions can pressure technology valuations, particularly for companies trading at elevated earnings multiples.

Investors are also monitoring whether speculative activity in leveraged ETFs could intensify market swings within the broader technology sector. Funds that deliver amplified daily returns often experience rapid inflows and outflows, contributing to sharper short-term price movements during both rallies and selloffs.

Looking ahead, traders will likely continue monitoring AI-related earnings performance, broader technology sector momentum, and Federal Reserve policy expectations for clues about the sustainability of leveraged growth trades. Continued strength in enterprise software demand and AI infrastructure investment could support additional upside momentum for funds like NOWL. However, elevated volatility, profit-taking activity, or broader market weakness may create sharp downside risks, particularly given the ETF’s leveraged structure and sensitivity to rapid price swings in underlying technology shares.