US stock short positions hit an all-time high as AI risks intensify

Market concerns
On July 20, despite US stocks continuing to rise, investor bearish sentiment kept mounting. As markets worry whether this AI-driven rally can sustain, short bets on US stocks have risen to a historical high. Since late March, the S&P 500 index has gained 18% in total. According to data compiled by S3 Partners LLC since 2010, the ratio of short positions in S&P 500 constituent stocks to free-float shares has risen to 3.79%, a record high.
The same ratio for Russell 3000 constituents has also recently risen to 6.3%, setting another record. Although shorting stocks overall has not been a successful trading strategy this year, shorts have still maintained their bearish stance as markets remain concerned about AI investment returns and related risks continue to disrupt the market. Ihor Dusaniwsky, head of predictive analytics at S3 Partners, said: “Shorting activity has increased, and the scope of coverage for the stocks being shorted is also expanding.” #美股