Short sellers have lost more than $175 billion betting against US stocks after investor mania for AI fueled an unexpected tech rally.
The surge in tech stocks led to $175.2 billion in mark-to-market losses for short sellers year-to-date, with $53.5 billion of it stemming for July alone. , only 30% of every shorted stock was a profitable trade for investors this year. "US/Canada equity short sellers started out 2023 with large mark-to-market losses in January, followed by four months of profits, and now a second month of large losses," S3 Partners said in a research note.
Short selling, also known as shorting, refers to investors borrowing stock to sell with the goal of buying it back later at a lower price and returning it to the lender, pocketing a profit. Traders engage in short selling when they expect a company's stock price to decline, and want to make money if that happens.through 2023 thanks to the release of OpenAI's ChatGPT in November, and optimism that the Federal Reserve will ease up on its monetary policy.
Short interest in stocks including Nvidia, Meta, and Tesla have proved to be the least profitable shorts for traders, S3 Partners reveals. The three companies have ballooned in value so far this year, with
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bearish Hedge Funds Surprised by Stock Market RallyHedge funds that were betting against the stock market have been caught off guard by the recent rally. Despite falling inflation and low unemployment, these funds closed out more positions in June and July than in the past seven years. Short-sellers suffered losses of $53 million.
Source: BusinessInsider - 🏆 729. / 51 Read more »