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S3 Partners data shows that total short interest in the US exceeded $1 trillion as of last Friday.
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The top five are mega tech companies Tesla, Apple, Microsoft, Nvidia and Amazon.
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This follows big gains in the stock market so far this year.
The US short interest rate rose this month to the highest level since April 2022, as investors bet on it Running current bull The stock market is about to crash.
According to data from S3 Partners, the amount spent by short sellers against US stocks was $1.02 trillion, as of Friday. Those bets came even as a rally earlier this month continued, costing short sellers $101 billion.
S3 data shows that the best shorts are TeslaAnd appleAnd MicrosoftAnd nvidiaAnd Amazon. As of Friday, their collective short interest is over $83 billion.
The bearish sentiment results from skepticism about how far stocks can rise. so far this year, Standard & Poor’s 500 It rose by 13.5% and the Nasdaq by 29%.
But ever since the Fed signaled last week that more rate hikes are on the table this year, stocks have been on a losing streak.
This year, Wall Street has been caught up in an uproar over artificial intelligence companies, which have seen their valuations skyrocket and have seen Bringing more investors into the market because of the “fear of missing out”.
But the big names have expressed mixed views on the AI craze. For example, while Stanley Druckenmiller sees Nvidia as a stock worth holding over the next couple of years, the short seller is Jim Chanos Be suspicious of stocks.
Meanwhile, the prospect of continued Fed tightening added to the macroeconomic risks. newly Goldman Sachs report He put the odds of a recession in the next 12 months at 25%, and warned that deflation could cause a 23% drop in the S&P 500.
However, if bullish investors win, the short trades may eventually support the market’s gains, as the short squeeze leads to more buying and boosts stocks.
Read the original article at Business interested