On July 20, despite continued gains in US stocks, investor bearish sentiment kept intensifying. As the market worried whether this AI-driven rally can sustain its momentum, bearish bets against US stocks rose to a record high.

Since the end of March, the S&P 500 index has gained 18% in total. Based on data compiled by S3 Partners LLC since 2010, the ratio of short positions in S&P 500 index constituent stocks to shares in free float has risen to 3.79%, setting a historical record. The same ratio for Russell 3000 index constituent stocks has also recently risen to 6.3%, likewise breaking a record.

Although shorting stocks overall this year has not been a successful trading strategy, short sellers have still maintained their bearish stance because the market has continued to worry about AI investment returns and related risks have kept disrupting the market. Ihor Dusaniwsky, head of predictive analytics at S3 Partners, said: “Short activity has increased, and the coverage of the stocks being shorted has also expanded.” #GUSD年化升至3.8%