Short sellers bet $1 trillion against US stocks

Wall Street Danger


  • Due to the big rally in the stock market, short sellers now believe that stocks will crash.
  • US short interest rose this month to the highest level since April 2022.
  • The stocks where there are the most bets against are: Tesla, Apple, Microsoft, Nvidia and Amazon.

Short sellers bet more than $1 trillion against US stocks, according to data from S3 Partners. Now short interest rose in June to its highest level since April 2022.

This occurred despite short sellers losing $101 billion earlier this month alone, due to the rising market. It is that the S&P 500 accumulates an increase in 2023 of 13.4% and the Nasdaq of 29%.

The company S3 also revealed that the stocks in which there are more bets are: Tesla, Apple, Microsoft, Nvidia and Amazon. The collective interest in short has already exceeded 83,000 million dollars.

However, short investors believe that stocks will start to fall due to the Federal Reserve’s announcement that it will continue to raise rates this year.

These months, Wall Street has risen thanks to the euphoria caused by the boost of artificial intelligence. Many traders did not want to miss the rally so they also bet on the market.

Still, big analysts have lowered their odds of a US recession this year, something that would benefit stocks.