Deep Tide TechFlow message: On July 20, Bloomberg reported that as concerns over risks related to artificial intelligence intensified, investors’ bearish bets on the US stock market were rising to a record high, reflecting skepticism in the market about the sustainability of the current uptrend.

Data show that the proportion of short positions in S&P 500 index constituent stocks as a share of free-float shares is nearing 3.79%, setting a record high since S3 Partners began tracking in 2010. Meanwhile, the short ratio for Russell 3000 index constituent stocks has recently risen to 6.3%, also breaking records. Analysts noted that the sharp increase in short positions not only reflects investors’ concerns about the risks of an AI bubble, earnings expectations, and market concentration, but could also serve as an important signal of increased market volatility.