Leveraged exchange‑traded funds (ETFs) have become one of the most powerful forces shaping the U.S. equity market. Daily rebalancing activity in these funds has reached a record $50 billion, more than quadruple the amount since the start of 2026. The rebalancing volume now equals 1.60 % of the total trading volume of S&P 500 futures contracts, a figure more than twice the peak seen between 2020 and 2024. In simple terms, the size of leveraged ETFs has grown to the point where their daily rebalancing can amplify market swings in both up‑trends and down‑trends. The result is that leveraged ETFs are now driving market volatility more than ever before.